Analysts predict 16% gains for UXI holdings

ILooking at the underlying ETF holdings in our coverage universe on ETF Channel, we compared the trading price of each holding to the 12-month futures analyst average target price, and calculated the weighted average implied analyst target price. for the ETF itself. For the ProShares Ultra Industrials ETF (ticker: UXI), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $33.00 per share.

With UXI trading at a recent price close to $28.38 per share, this means analysts see 16.29% upside potential for this ETF relative to the average analyst targets of the underlying holdings. PayPal Holdings Inc (ticker: PYPL), Block Inc (ticker: SQ) and Axon Enterprise Inc (ticker: AXON) are three of UXI’s underlying holdings with a notable advantage over their analyst target prices. Although PYPL traded at a recent price of $118.77/share, the average analyst target is 71.06% higher at $203.17/share. Similarly, SQ is up 62.88% from the recent share price of $140.64 if the average analyst target price of $229.07/share is reached, and analysts expect average for AXON to hit a target price of $211.00/share, 56.42% above the recent price of $134.89. Below is a 12 month price history chart comparing the stock performance of PYPL, SQ and AXON:

Below is a table summarizing the current target prices of the analysts mentioned above:

name symbol Recent Price Avg. 12-MB Analyst. Target % increase over target
ProShares Ultra Industrials ETFs UXI $28.38 $33.00 16.29%
PayPal Holdings Inc. PYPL $118.77 $203.17 71.06%
Block Inc. SQ $140.64 $229.07 62.88%
Axon Inc. AXONE $134.89 $211.00 56.42%

Are analysts justified in these targets, or too optimistic about where these stocks will trade in 12 months? Do the analysts have a valid rationale for their goals, or are they lagging behind recent company and industry developments? A high price target relative to a stock’s price can reflect optimism about the future, but can also be a precursor to target price declines if targets were a relic of the past. These are questions that require further investor research.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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