The Kogan.com Ltd (ASX: KGN) share price is heading in the right direction again on Friday morning.
At the time of writing, the ecommerce company's shares are up over 1% to $9.87.
However, despite this morning's gain, the Kogan share price is still down over 6% since the end of last week.
This may be due to concerns over the impact that proposed strikes by transport operators could have on online shopping during the peak Christmas season.
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Is the Kogan share price good value?
One leading broker that appears to see a lot of value in the Kogan share price is Credit Suisse.
According to a recent note, the broker currently has an outperform rating and $14.06 price target on the company's shares.
Based on the latest Kogan share price, this implies potential upside of 42% over the next 12 months.
What did the broker say?
Credit Suisse acknowledges that it remains unclear how quickly the company can reduce its cost base to normal levels after a disastrous FY 2021.
Due to the company's excess inventory, Kogan reported a significant increase in storage costs. It also led to Kogan spending more on sales and marketing to help shift it. This weighed heavily on its margins and limited its full year profit to just $3.5 million from gross sales of almost $1.2 billion. This was down 86.8% year on year.
Nevertheless, Credit Suisse feels investors should look beyond the short term and focus more on its long term growth potential. This is being underpinned by Kogan's strong market position, the shift to online shopping, and its growing private label business.
Overall, based on this, the broker feels the Kogan share price is trading at an attractive level for investors and it retains its outperform rating.
