When evaluating the underlying holdings of the ETFs in our coverage universe at ETF Channel, we meticulously compared the trading price of each holding against the average analyst 12-month forward target price and calculated the weighted average implied analyst target price for the ETF itself. Our findings revealed that for the First Trust North American Energy Infrastructure Fund ETF (EMLP), the implied analyst target price for the ETF, based upon its underlying holdings, stands at $30.86 per unit, while EMLP is currently fetching approximately $27.74 per unit. This indicates an impressive 11.26% upside potential as indicated by the average analyst targets of the underlying holdings. Notable among these holdings are Chesapeake Utilities Corp. (CPK), Williams Cos Inc (WMB), and Idacorp Inc (IDA). CPK has a striking 14.29% upside from its recent share price of $105.00, reaching $120.00, whereas WMB shows a potential 12.37% increase from the recent share price of $34.31 to the average analyst target price of $38.55/share. Similarly, analysts are optimistic that IDA will reach a target price of $99.60/share, marking a 12.33% increase from the recent price of $88.67. An enlightening twelve-month price history chart comparing the stock performance of CPK, WMB, and IDA can be seen below.
Additionally, the table below provides a summary of the current analyst target prices discussed above:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| First Trust North American Energy Infrastructure Fund ETF | EMLP | $27.74 | $30.86 | 11.26% |
| Chesapeake Utilities Corp. | CPK | $105.00 | $120.00 | 14.29% |
| Williams Cos Inc | WMB | $34.31 | $38.55 | 12.37% |
| Idacorp Inc | IDA | $88.67 | $99.60 | 12.33% |
Should investors unquestionably rely on these targets, or are the analysts too cheerful about where these stocks will be positioned 12 months from now? Do the targets have any substantial grounding in recent company and industry developments? A high price target vis-à-vis a stock’s trading price can imply optimism about the future, but it can also be a red flag, signaling potential target price downgrades if the projections are outdated. These are crucial questions that necessitate further investor scrutiny.
Currently, Nasdaq.com offers a list of 10 ETFs with the most potential upside to analyst targets. Also, keep an eye on CATH YTD Return, CGRN Videos, and Institutional Holders of LNKD.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
