Analysts See Significant Upside for Vanguard Energy ETF
At ETF Channel, we’ve analyzed the underlying holdings of ETFs in our coverage universe. By comparing the trading price of each holding against its average analyst 12-month forward target price, we computed the weighted average implied analyst target price for the Vanguard Energy ETF (Symbol: VDE). The result indicates an implied target price of $149.52 per unit for VDE.
Currently, VDE is trading at about $130.70 per unit. This suggests that analysts anticipate a 14.40% upside for the ETF, based on the average targets of its underlying holdings. Prominent among these are Nabors Industries Ltd (Symbol: NBR), Kimbell Royalty Partners LP (Symbol: KRP), and Baker Hughes Company (Symbol: BKR), all of which show notable upsides to their analyst target prices. For instance, NBR, currently at $42.84 per share, has an average analyst target that is 50.17% higher, at $64.33 per share. Similarly, KRP’s recent share price of $14.31 suggests a 31.61% upside if it reaches the target price of $18.83 per share. Lastly, BKR is expected to rise to a target price of $52.96 per share, reflecting a 17.89% increase from its current price of $44.92.
Below is a twelve-month price history chart that compares the stock performance of NBR, KRP, and BKR:
The following table summarizes the current analyst target prices discussed above:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| Vanguard Energy ETF | VDE | $130.70 | $149.52 | 14.40% |
| Nabors Industries Ltd | NBR | $42.84 | $64.33 | 50.17% |
| Kimbell Royalty Partners LP | KRP | $14.31 | $18.83 | 31.61% |
| Baker Hughes Company | BKR | $44.92 | $52.96 | 17.89% |
Investors might wonder: Are the analysts justified in their price targets, or are they being overly optimistic about where these stocks will trade in the next twelve months? There is a possibility that a high price target relative to a stock’s trading price reflects an unrealistic future outlook. Investors should consider whether analysts’ targets are based on solid rationale or if they are lagging behind recent developments in the companies or the industry. Pursuing such inquiries is essential for informed investment decisions.
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Also See:
• XNPT Options Chain
• RBA Average Annual Return
• Funds Holding EDIG
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
