Looking at the underlying holdings of the ETFs in our coverage universe ETF channel, we’ve compared each holding’s trading price against the average analyst 12-month forward target price, and calculated a weighted average implied analyst target price for the ETF. For the iShares S&P Small-Cap 600 Growth ETF (symbol: IJT), we find an implied analyst target price for the ETF based on its underlying holdings of $131.59 per unit.
With IJT’s recent price near $106.56 per unit, this means analysts see 23.49% upside for this ETF, looking at average analyst targets for the underlying holdings. Three of IJT’s underlying holdings with notable upsides to their analyst target prices are Cytokinetics Inc (symbol: CYTK), Agility Inc (symbol: AGTI), and Wabash National Corp (symbol: WNC). Although CYTK traded at a recent price of $38.95/share, the average analyst target is 55.41% higher at $60.53/share. Similarly, AGTI has upside potential of 29.54% from the recent share price of $15.99 if the average analyst target price reaches $20.71/share, and analysts on average are expecting WNC to reach a target price of $30.70/share, Which is 27.92% more. Recent price of $24.00. Below is a twelve month price history chart comparing the stock performance of CYTK, AGTI, and WNC:
Below is a summary table of the current analyst target prices discussed above:
| Name | Sign | latest price | Average analyst 12-mo. Target | % above target |
|---|---|---|---|---|
| iShares S&P Small-Cap 600 Growth ETF | IJT | $106.56 | $131.59 | 23.49% |
| Cytokinetics Inc | cytk | $38.95 | $60.53 | 55.41% |
| Agility Inc | AGTI | $15.99 | $20.71 | 29.54% |
| Wabash National Corp. | Western Naval Command | $24.00 | $30.70 | 27.92% |
Are analysts being 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 higher price target relative to the stock’s trading price may reflect optimism about the future, but may also be a precursor to target price declines if the target were a relic of the past. These are questions that require further investor research.
See also:
, Albemarle Average Annual Return
The views and opinions expressed here are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.