Add Up The Pieces: VBK Could Be Worth $286

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 Vanguard Small-Cap Growth ETF (Symbol: VBK), we found that the implied analyst target price for the ETF based upon its underlying holdings is $286.21 per unit.

With VBK trading at a recent price near $252.47 per unit, that means that analysts see 13.36% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VBK's underlying holdings with notable upside to their analyst target prices are CG oncology Inc (Symbol: CGON), Sage Therapeutics Inc (Symbol: SAGE), and Getty Images Holdings Inc (Symbol: GETY). Although CGON has traded at a recent price of $37.75/share, the average analyst target is 76.42% higher at $66.60/share. Similarly, SAGE has 64.19% upside from the recent share price of $16.58 if the average analyst target price of $27.22/share is reached, and analysts on average are expecting GETY to reach a target price of $6.24/share, which is 57.20% above the recent price of $3.97. Below is a twelve month price history chart comparing the stock performance of CGON, SAGE, and GETY:

CGON, SAGE, and GETY 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
Vanguard Small-Cap Growth ETF VBK $252.47 $286.21 13.36%
CG oncology Inc CGON $37.75 $66.60 76.42%
Sage Therapeutics Inc SAGE $16.58 $27.22 64.19%
Getty Images Holdings Inc GETY $3.97 $6.24 57.20%

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 »

Also see:

• REITs Dividend Stocks
• Funds Holding ALEC
• Institutional Holders of NVNO

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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