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 Thrivent Small-Mid Cap ESG ETF (Symbol: TSME), we found that the implied analyst target price for the ETF based upon its underlying holdings is $42.16 per unit.
With TSME trading at a recent price near $32.22 per unit, that means that analysts see 30.85% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of TSME's underlying holdings with notable upside to their analyst target prices are Bio-Techne Corp (Symbol: TECH), Burlington Stores Inc (Symbol: BURL), and nVent Electric PLC (Symbol: NVT). Although TECH has traded at a recent price of $50.17/share, the average analyst target is 60.18% higher at $80.36/share. Similarly, BURL has 52.59% upside from the recent share price of $217.80 if the average analyst target price of $332.33/share is reached, and analysts on average are expecting NVT to reach a target price of $72.56/share, which is 38.86% above the recent price of $52.25. Below is a twelve month price history chart comparing the stock performance of TECH, BURL, and NVT:
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 |
|---|---|---|---|---|
| Thrivent Small-Mid Cap ESG ETF | TSME | $32.22 | $42.16 | 30.85% |
| Bio-Techne Corp | TECH | $50.17 | $80.36 | 60.18% |
| Burlington Stores Inc | BURL | $217.80 | $332.33 | 52.59% |
| nVent Electric PLC | NVT | $52.25 | $72.56 | 38.86% |
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.
