Markets

Sum Up The Parts: PXMG Could Be Worth $34

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 PowerShares Russell Midcap Pure Growth Portfolio ETF (Symbol: PXMG), we found that the implied analyst target price for the ETF based upon its underlying holdings is $33.70 per unit.

With PXMG trading at a recent price near $29.66 per unit, that means that analysts see 13.61% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PXMG's underlying holdings with notable upside to their analyst target prices are Juno Therapeutics Inc (Symbol: JUNO), Lions Gate Entertainment Corp. (Symbol: LGF), and Jazz Pharmaceuticals plc (Symbol: JAZZ). Although JUNO has traded at a recent price of $41.27/share, the average analyst target is 48.11% higher at $61.12/share. Similarly, LGF has 33.18% upside from the recent share price of $21.25 if the average analyst target price of $28.30/share is reached, and analysts on average are expecting JAZZ to reach a target price of $190.36/share, which is 28.13% above the recent price of $148.57. Below is a twelve month price history chart comparing the stock performance of JUNO, LGF, and JAZZ:

JUNO, LGF, and JAZZ 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
PowerShares Russell Midcap Pure Growth Portfolio ETF PXMG $29.66 $33.70 13.61%
Juno Therapeutics Inc JUNO $41.27 $61.12 48.11%
Lions Gate Entertainment Corp. LGF $21.25 $28.30 33.18%
Jazz Pharmaceuticals plc JAZZ $148.57 $190.36 28.13%

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.


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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