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 BuyBack Achievers ETF (Symbol: PKW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $147.73 per unit.
With PKW trading at a recent price near $128.72 per unit, that means that analysts see 14.77% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PKW's underlying holdings with notable upside to their analyst target prices are Build-A-Bear Workshop Inc (Symbol: BBW), Option Care Health Inc (Symbol: OPCH), and SiriusPoint Ltd (Symbol: SPNT). Although BBW has traded at a recent price of $51.15/share, the average analyst target is 56.40% higher at $80.00/share. Similarly, OPCH has 32.51% upside from the recent share price of $27.03 if the average analyst target price of $35.82/share is reached, and analysts on average are expecting SPNT to reach a target price of $25.00/share, which is 31.30% above the recent price of $19.04. Below is a twelve month price history chart comparing the stock performance of BBW, OPCH, and SPNT:
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 BuyBack Achievers ETF | PKW | $128.72 | $147.73 | 14.77% |
| Build-A-Bear Workshop Inc | BBW | $51.15 | $80.00 | 56.40% |
| Option Care Health Inc | OPCH | $27.03 | $35.82 | 32.51% |
| SiriusPoint Ltd | SPNT | $19.04 | $25.00 | 31.30% |
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:
AVTE Insider Buying
K 13F Filers
GNMA YTD Return
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
