Analysts See Upside Potential for SPDR S&P Metals & Mining ETF
Recent analysis reveals bullish target prices for XME’s underlying stocks.
In a detailed evaluation of ETFs covered by ETF Channel, we examined the SPDR S&P Metals & Mining ETF (Symbol: XME) and its underlying holdings. The calculated implied analyst target price for XME is $76.64 per unit, significantly higher than its recent trading price of $68.26. This suggests a potential upside of 12.27% based on analysts’ expectations for the underlying assets.
Among XME’s top holdings, Hecla Mining Co (Symbol: HL), Coeur Mining Inc (Symbol: CDE), and Peabody Energy Corp (Symbol: BTU) stand out for their notable upside potential compared to their analyst target prices. Currently priced at $5.40 per share, HL has an average target of $7.90, indicating a possible increase of 46.30%. CDE, trading at $6.19, has an expected rise of 37.32% to an average target of $8.50. Peabody Energy’s recent price sits at $23.60, with analysts forecasting a rise of 26.06% to a target of $29.75 per share. The following chart illustrates the performance of HL, CDE, and BTU over the last twelve months:
Together, these companies constitute 7.67% of the SPDR S&P Metals & Mining ETF. Below is a summary table of the current analyst target prices for these stocks:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| SPDR S&P Metals & Mining ETF | XME | $68.26 | $76.64 | 12.27% |
| Hecla Mining Co | HL | $5.40 | $7.90 | 46.30% |
| Coeur Mining Inc | CDE | $6.19 | $8.50 | 37.32% |
| Peabody Energy Corp | BTU | $23.60 | $29.75 | 26.06% |
These analyst targets bring up questions about their reliability. Are these predictions justified, or could they be overly optimistic? Investors should consider the possibility that lofty target prices might lead to downgrades if set against realities of recent market trends.
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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.
