Examining the underlying holdings of the ETFs in our coverage universe at ETF Channel, we’ve 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. Amid this analysis, the Vanguard S&P 500 Value ETF (Symbol: VOOV) emerged with an implied analyst target price of $185.92 per unit. Consequently, with VOOV trading at around $169.48 per unit, analysts envision a 9.70% upside for this ETF, projecting through to the average analyst targets of the underlying holdings.
Notable Upside for Key Holdings
Of particular interest, three of VOOV’s underlying holdings exhibit notable upside to their analyst target prices: Bristol Myers Squibb Co. (Symbol: BMY), Campbell Soup Co (Symbol: CPB), and General Mills Inc (Symbol: GIS). Contrasting the recent share price of $48.89 for BMY, the average analyst target stands 16.82% higher at $57.11 per share. Similarly, CPB displays an 11.93% upside from the recent share price of $40.92 if the average analyst target price of $45.80 per share is achieved – and analysts, on average, anticipate GIS to attain a target price of $68.47 per share, reflecting a 9.78% increase from the recent price of $62.37. Here’s a twelve-month price history chart comparing the stock performance of BMY, CPB, and GIS:
Comparative Analyst Target Prices
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 |
|---|---|---|---|---|
| Vanguard S&P 500 Value ETF | VOOV | $169.48 | $185.92 | 9.70% |
| Bristol Myers Squibb Co. | BMY | $48.89 | $57.11 | 16.82% |
| Campbell Soup Co | CPB | $40.92 | $45.80 | 11.93% |
| General Mills Inc | GIS | $62.37 | $68.47 | 9.78% |
Now, the big question – 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.
