Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel , we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Core S&P 500 ETF (Symbol: IVV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $319.18 per unit.
With IVV trading at a recent price near $273.83 per unit, that means that analysts see 16.56% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IVV's underlying holdings with notable upside to their analyst target prices are Tiffany & Co. (Symbol: TIF), News Corp (Symbol: NWSA), and LyondellBasell Industries NV (Symbol: LYB). Although TIF has traded at a recent price of $115.92/share, the average analyst target is 20.84% higher at $140.08/share. Similarly, NWSA has 19.21% upside from the recent share price of $13.17 if the average analyst target price of $15.70/share is reached, and analysts on average are expecting LYB to reach a target price of $110.50/share, which is 18.69% above the recent price of $93.10. Below is a twelve month price history chart comparing the stock performance of TIF, NWSA, and LYB:
Below is a summary table of the current analyst target prices discussed above:
|Name ||Symbol ||Recent Price ||Avg. Analyst 12-Mo. Target ||% Upside to Target |
| iShares Core S&P 500 ETF || IVV || $273.83 || $319.18 || 16.56% |
|Tiffany & Co. ||TIF ||$115.92 ||$140.08 ||20.84% |
|News Corp ||NWSA ||$13.17 ||$15.70 ||19.21% |
|LyondellBasell Industries NV ||LYB ||$93.10 ||$110.50 ||18.69% |
Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.
10 ETFs With Most Upside To Analyst Targets »