Surprising Analyst 12-Month Target For USLB

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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 Invesco Russell 1000 Low Beta Equal Weight ETF (Symbol: USLB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $35.29 per unit.

With USLB trading at a recent price near $31.31 per unit, that means that analysts see 12.72% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USLB's underlying holdings with notable upside to their analyst target prices are Hain Celestial Group Inc (Symbol: HAIN), Madison Square Garden Co (Symbol: MSG), and Hudson Pacific Properties Inc (Symbol: HPP). Although HAIN has traded at a recent price of $20.78/share, the average analyst target is 43.41% higher at $29.80/share. Similarly, MSG has 28.17% upside from the recent share price of $274.63 if the average analyst target price of $352.00/share is reached, and analysts on average are expecting HPP to reach a target price of $39.38/share, which is 27.76% above the recent price of $30.82. Below is a twelve month price history chart comparing the stock performance of HAIN, MSG, and HPP:

HAIN, MSG, and HPP Relative Performance Chart

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
Invesco Russell 1000 Low Beta Equal Weight ETF USLB $31.31 $35.29 12.72%
Hain Celestial Group Inc HAIN $20.78 $29.80 43.41%
Madison Square Garden Co MSG $274.63 $352.00 28.17%
Hudson Pacific Properties Inc HPP $30.82 $39.38 27.76%

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 »

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

This article appears in: Investing , ETFs
Referenced Symbols: USLB , HAIN , MSG , HPP

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