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THEBy examining the underlying holdings of ETFs in our hedge universe on ETF Channel, we compared the trade price of each holding to the 12-month average analyst forward target price, and calculated the weighted average implied target price of analysts. for the ETF itself. For the Invesco S&P 500 – Enhanced Value ETF (ticker: SPVU), we found that the implied analyst target price for the ETF based on its underlying holdings is $ 47.81 per unit.
With SPVU trading at a recent price close to $ 43.51 per unit, that means analysts are seeing a 9.91% rise for this ETF taking into account analysts’ average targets for the underlying holdings. Three of SPVU’s underlying holdings with a notable rise over their analysts’ target prices are Capital One Financial Corp (ticker: COF), Phillips 66 (ticker: PSX) and DISH Network Corp (ticker: DISH). Although COF recently traded at $ 152.50 / share, analysts’ average target is 15.96% higher at $ 176.85 / share. Likewise, PSX is 11.53% higher from the recent share price of $ 77.35 if the average analyst target price of $ 86.27 / share is met, and analysts expect on average for DISH to hit a target price of $ 46.00 / share, which is 11.06% above the recent price of $ 41.42. Below is a 12-month price history chart comparing the performance of COF, PSX and DISH stocks:
Below is a summary table of the analysts’ current target prices discussed above:
| name | symbol | Recent price | Avg. 12-Mo analyst. Target | % increase over target |
|---|---|---|---|---|
| Invesco S&P 500 – Value Enhanced ETF | SPVU | $ 43.51 | $ 47.81 | 9.91% |
| Capital One Financial Corp | COF | $ 152.50 | $ 176.85 | 15.96% |
| Phillips 66 | PSX | $ 77.35 | $ 86.27 | 11.53% |
| DISH Network Corp | PLATE | $ 41.42 | $ 46.00 | 11.06% |
Are analysts justified in these goals, or overly optimistic about where these stocks will trade in 12 months? Do analysts have a valid rationale for their goals or are they lagging behind recent business and industry developments? A high price target relative to a stock’s price may reflect optimism about the future, but can also be a harbinger of price declines if the targets were a relic of the past. These are questions that require further research from investors.
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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.
