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 Russell Mid-Cap Value ETF (Symbol: IWS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $145.53 per unit.
With IWS trading at a recent price near $130.19 per unit, that means that analysts see 11.79% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWS's underlying holdings with notable upside to their analyst target prices are Bath & Body Works Inc (Symbol: BBWI), Globus Medical Inc (Symbol: GMED), and Vestis Corp (Symbol: VSTS). Although BBWI has traded at a recent price of $26.26/share, the average analyst target is 56.38% higher at $41.07/share. Similarly, GMED has 42.95% upside from the recent share price of $60.80 if the average analyst target price of $86.92/share is reached, and analysts on average are expecting VSTS to reach a target price of $8.18/share, which is 32.50% above the recent price of $6.17. Below is a twelve month price history chart comparing the stock performance of BBWI, GMED, and VSTS:
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 Russell Mid-Cap Value ETF | IWS | $130.19 | $145.53 | 11.79% |
| Bath & Body Works Inc | BBWI | $26.26 | $41.07 | 56.38% |
| Globus Medical Inc | GMED | $60.80 | $86.92 | 42.95% |
| Vestis Corp | VSTS | $6.17 | $8.18 | 32.50% |
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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
