In a review of ETFs monitored by ETF Channel, we compared the trading prices of underlying holdings to average 12-month analyst target prices. Our analysis shows that for the iShares Expanded Tech Sector ETF (Symbol: IGM), the weighted average implied analyst target price is $118.02 per unit.
Current Price and Upside Potential
Currently, IGM is trading around $107.44 per unit. This indicates that analysts believe there is a potential upside of 9.84% based on the forecasts for its underlying holdings. Notably, three of IGM’s components show significant upside potential compared to their analyst target prices: CGI Inc (Symbol: GIB), Kulicke & Soffa Industries, Inc. (Symbol: KLIC), and Digi International Inc (Symbol: DGII). For instance, GIB is trading at $111.61 per share, while analyst expectations suggest a target price of $126.37 per share, representing an increase of 13.23%. Likewise, KLIC offers an upside of 12.61% from its current price of $45.82, given an average target of $51.60 per share. Similarly, analysts forecast DGII to reach $37.10 per share, up 12.46% from its recent price of $32.99. Below is a chart detailing the twelve-month price history of GIB, KLIC, and DGII:
Comparison of Analyst Targets
The table below summarizes the recent prices and average analyst target prices for the stocks discussed:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| iShares Expanded Tech Sector ETF | IGM | $107.44 | $118.02 | 9.84% |
| CGI Inc | GIB | $111.61 | $126.37 | 13.23% |
| Kulicke & Soffa Industries, Inc. | KLIC | $45.82 | $51.60 | 12.61% |
| Digi International Inc | DGII | $32.99 | $37.10 | 12.46% |
Analysts’ Predictions: Credible or Overly Optimistic?
The question remains: Are analysts’ target prices justified, or do they reflect an overly optimistic view of the market? It is essential for investors to research the context behind these targets. High valuations relative to current trading prices can indicate confidence in future growth but may also foreshadow potential downgrades if those targets do not align with real-time market conditions.
10 ETFs With Most Upside To Analyst Targets »
Also see:
• Canada Stock Channel
• BCOR Options Chain
• LIND market cap history
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
