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 Edge MSCI Min Vol USA ETF (Symbol: USMV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $60.33 per unit.
With USMV trading at a recent price near $49.78 per unit, that means that analysts see 21.19% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of USMV's underlying holdings with notable upside to their analyst target prices are Bristol-Myers Squibb Co. (Symbol: BMY), Motorola Solutions Inc (Symbol: MSI), and Intuit Inc (Symbol: INTU). Although BMY has traded at a recent price of $48.76/share, the average analyst target is 26.70% higher at $61.78/share. Similarly, MSI has 26.27% upside from the recent share price of $108.97 if the average analyst target price of $137.60/share is reached, and analysts on average are expecting INTU to reach a target price of $229.42/share, which is 25.54% above the recent price of $182.75. Below is a twelve month price history chart comparing the stock performance of BMY, MSI, and INTU:
Below is a summary table of the current analyst target prices discussed above:
Avg. Analyst 12-Mo. Target
% Upside to Target
iShares Edge MSCI Min Vol USA ETF
Bristol-Myers Squibb Co.
Motorola Solutions Inc
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.