Could Goodman shares rise more than 20%?

Goodman Group (ASX: GMG) shares have been relatively positive performers this year.

Since the start of the year, the industrial property giant’s shares have risen approximately 4%.

This compares favourably to a largely flat performance from the S&P/ASX 200 Index (ASX: XJO).

But what’s to come for this popular stock? Could it deliver double-digit returns over the next 12 months? Let’s see what analysts are saying.

Could Goodman shares deliver big returns?

The broker community is overwhelmingly positive on Goodman, with many brokers having the equivalent of buy ratings on its shares.

One of those brokers is Bell Potter, which has a buy rating and $35.50 price target on them.

Based on the current Goodman share price of $32.17, this implies potential upside of 10% for investors over the next 12 months. It recently commented:

While we do have some question marks visà-vis leasing progress, extension of timelines and associated impact on earnings mix and booking of profits, the moat around the haves and have nots for scaled data centre players appears to be widening, recognising the scale and complexity of execution. Post pull back, GMG trades at a discount to its 5yr PE vs. ASX200 avg (28% prem. vs. 52% 5yr avg) with forward customer signings a key driver.

Who else is bullish?

The team at Morgan Stanley is another bull. Earlier this week, the broker put an overweight rating and $36.15 price target on its shares. This suggests that upside of 12% is possible between now and this time next year.

Another broker that is positive is Morgans. It has a buy rating and $36.00 price target, which offers similar upside. It commented:

GMG’s 3Q26 update reinforced a deliberate strategy: deploy balance-sheet capital ahead of customer commitments to win the race for power-enabled metro data centre (DC) capacity. WIP is set to step from $14.5bn at Mar-26 to a record c.$18bn by Jun-26 (Consensus $17.7bn), with the power bank lifted to 6.4GW.

Operationally the update was mixed, with pre-committed share, production rate and Yield On Cost (YOC) all relatively flat hoh. The structurally important note was management’s view that industry DC capex requirements likely exceed global capital market funding capacity, a backdrop that favours those with secured power, sites and locked-in capital partners. FY26 OEPSg guided to ‘at least 9%’ (prior 9%; MorgansF 9.2%; Consensus 9.8%), marginally up.

Finally, the team at Citi has a buy rating and $40.00 price target on Goodman shares. This implies potential upside of approximately 24% for investors over the next 12 months.

The post Could Goodman shares rise more than 20%? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.