When delving into the underlying holdings of the ETFs within our coverage at ETF Channel, a comparison is made between the trading price of each holding and the average analyst 12-month forward target price. Following this analysis, the weighted average implied analyst target price for the ETF is calculated. In the case of the iShares Core S&P Small-Cap ETF (Symbol: IJR), the implied analyst target price based on its underlying holdings stands at $119.69 per unit.
The current trading price of IJR hovers around $106.88 per unit, indicating an appealing 11.99% upside as projected by analysts through the average analyst targets of the underlying holdings. Noteworthy among IJR’s underlying holdings are Alexander & Baldwin Inc (Symbol: ALEX), United Community Banks Inc (Symbol: UCBI), and United Community Banks Inc (Symbol: UCBI), which display promising upside to their respective analyst target prices. Despite ALEX’s recent price of $16.71/share, the average analyst target of $20.00/share reflects a 19.69% increase. Similarly, UCBI shows an 18.05% upside from its recent share price of $26.26 if it reaches the average analyst target price of $31.00/share. Analysts, on average, anticipate UCBI to meet a target price of $31.00/share, representing an 18.05% rise from the recent price of $26.26. A comparative twelve-month price history chart showcasing the stock performance of ALEX, UCBI, and UCBI is provided below:
Moreover, a summary table illustrating the current analyst target prices discussed above is presented as follows:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
|---|---|---|---|---|
| iShares Core S&P Small-Cap ETF | IJR | $106.88 | $119.69 | 11.99% |
| Alexander & Baldwin Inc | ALEX | $16.71 | $20.00 | 19.69% |
| United Community Banks Inc | UCBI | $26.26 | $31.00 | 18.05% |
Do the analysts hold justified expectations, or are they overly optimistic about the future trading prospects of these stocks in 12 months? Have the analysts adequately considered the recent developments in the companies and industries, or are they lagging behind? A lofty price target in comparison to a stock’s trading price may signal optimism for the future but could also set the stage for target price reductions if the targets are outdated. These queries beckon further investigation from potential investors.
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The expressed views and opinions herein belong to the author and not necessarily reflect Nasdaq, Inc.’s perspectives.
