Credit Suisse says the Kogan (ASX:KGN) share price has major upside

Is it time to buy this e-commerce share?

| More on:
Man online with computers discussing the ASX 200

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Kogan.com Ltd (ASX: KGN) share price is rising on Friday.

In early afternoon trade, the e-commerce company's shares are up 1.5% to $10.91.

Though, this will be little consolation for some shareholders. The company's shares are still down 44% in 2021.

Could the Kogan share price be in the buy zone?

One leading broker that appears to see a lot of value in the Kogan share price at the current level is Credit Suisse.

Its analysts have an outperform rating and a $14.06 price target on the company's shares.

Based on the current Kogan share price, this implies a potential upside of 29% over the next 12 months.

Why is the broker positive on Kogan?

Credit Suisse is positive on the Kogan share price due to the company's strong long term growth potential.

While the broker acknowledges that there is a lot of uncertainty in the near term, particularly given its elevated cost base which is squashing margins, its analysts feel Kogan's future remains very positive.

This is due to its strong market position, the shift to online retail, and the strong value proposition of its private-label offering.

When will we hear from Kogan next?

Given the uncertainty the company is facing, investors are no doubt keen for an update from Kogan.

The good news is that it won't be long until Kogan comes face to face with shareholders. While it has not yet announced the date, traditionally the company holds its annual general meeting in the middle of November.

While not obliged to do so, Kogan is likely to release an update on current trading when it holds this meeting, unless it releases a first-quarter update in the meantime.

Those updates could have a major influence on where the Kogan share price goes from here, so stay tuned.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

What is Morgans saying about TechnologyOne, Wesfarmers, and Xero shares?

Let's see what the broker is saying about these shares.

Read more »

A man looking at his laptop and thinking.
Broker Notes

Are WiseTech shares a buy after its big acquisition?

Let's see what analysts are saying about this tech stock.

Read more »

ASX 200 shares broker downgrade origami paper fortune teller with buy hold sell and dollar sign options
Broker Notes

Are Bendigo Bank shares a buy, hold or sell? Here's Macquarie's latest recommendation

Should I buy the dip on Bendigo Bank shares today?

Read more »

Happy man working on his laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

5 of the best ASX 200 shares to buy in June

Let's see what brokers are recommending to investors for next month.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to 100%

Analysts are expecting these shares to deliver big returns over the next 12 months.

Read more »

Three people in a corporate office pour over a tablet, ready to invest.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Broker looking at the share price.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »