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:
| name | Symbol | Recent Price | Avg. 12-MB Analyst. Target | % increase over target |
|---|---|---|---|---|
| Invesco PureBeta MSCI United States ETF | PBUS | $44.17 | $52.93 | 19.82% |
| Robinhood Markets Inc | HOOD | $11.35 | $37.64 | 231.65% |
| Horizon Therapeutics plc | HZNP | $112.53 | $137.73 | 22.39% |
| Airbnb Inc. | ABNB | $160.25 | $192.69 | 20.25% |
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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
nasdaq
