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 iShares Evolved US Consumer Staples ETF (Symbol: IECS), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $37.31 per share.
With IECS trading at a recent price close to $33.61 per share, this means analysts see an 11.01% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Wingstop Inc (ticker: WING), Yum China Holdings Inc (ticker: YUMC) and Berry Global Group Inc (ticker: BERY) are three of IECS’s underlying holdings with a notable advantage over their analyst target prices . Although WING traded at a recent price of $108.81/share, the average analyst target is 53.91% higher at $167.47/share. Similarly, YUMC is up 50.87% from the recent stock price of $41.26 if the average analyst target price of $62.25/share is reached, and analysts expect in average for BERY to hit a target price of $79.78/share, 35.95% above the recent price of $58.68. Below is a 12 month price history chart comparing the performance of WING, YUMC and BERY stocks:
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|
|iShares Evolved US Consumer Staples ETF||CEIS||$33.61||$37.31||11.01%|
|Yum China Holdings Inc.||YUMC||$41.26||$62.25||50.87%|
|Berry Global Group Inc||BERY||$58.68||$79.78||35.95%|
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 research from investors.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.