How the Coins Add Up: PBUS Heads for $53

LLooking 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 Invesco PureBeta MSCI USA ETF (ticker: PBUS), we found that the analysts’ implied target price for the ETF based on its underlying holdings is $52.93 per share.

With PBUS trading at a recent price close to $44.17 per share, this means analysts see 19.82% upside potential for this ETF when looking at the average analyst targets of the underlying holdings. Robinhood Markets Inc (Symbol: HOOD), Horizon Therapeutics plc (Symbol: HZNP) and Airbnb Inc (Symbol: ABNB) are three of PBUS’s underlying holdings with a notable advantage over their analyst target prices. Although HOOD traded at a recent price of $11.35/share, the average analyst target is 231.65% higher at $37.64/share. Similarly, HZNP is up 22.39% from the recent share price of $112.53 if the average analyst target price of $137.73/share is reached, and analysts expect average for ABNB to hit a target price of $192.69/share, 20.25% above the recent price of $160.25. Below is a 12 month price history chart comparing the stock performance of HOOD, HZNP and ABNB:

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

nameSymbolRecent PriceAvg. 12-MB Analyst. Target% increase over target
Invesco PureBeta MSCI United States ETFPBUS$44.17$52.9319.82%
Robinhood Markets IncHOOD$11.35$37.64231.65%
Horizon Therapeutics plcHZNP$112.53$137.7322.39%
Airbnb Inc.ABNB$160.25$192.6920.25%

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.

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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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