Analysts Predict Strong Upside for Small-Cap ETF and Key Holdings
The SPDR Portfolio S&P 600 Small Cap ETF (Symbol: SPSM) shows substantial upside potential, according to recent evaluations from analysts. After analyzing the ETF’s underlying securities, the average implied target price for SPSM is set at $53.07 per unit. This is significantly above its current trading price of approximately $44.32, suggesting a potential increase of 19.75% over the next 12 months.
Among the key holdings contributing to this forecast are Gogo Inc (Symbol: GOGO), Tidewater Inc (Symbol: TDW), and Innovex International Inc (Symbol: INVX). Notably, GOGO is trading at $7.12 per share, yet analysts predict a 79.07% rise to an average target of $12.75. Similarly, TDW shares are priced at $55.08 with an expected jump of 75.33% to a target of $96.57. INVX, currently at $15.75, has a target price of $27.50, indicating a potential increase of 74.60%. The following chart illustrates their stock performances over the past year:
A summary table of the mentioned target prices is as follows:
Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target | % Upside to Target |
---|---|---|---|---|
SPDR Portfolio S&P 600 Small Cap ETF | SPSM | $44.32 | $53.07 | 19.75% |
Gogo Inc | GOGO | $7.12 | $12.75 | 79.07% |
Tidewater Inc | TDW | $55.08 | $96.57 | 75.33% |
Innovex International Inc | INVX | $15.75 | $27.50 | 74.60% |
These optimistic targets raise important questions. Are analysts being overly ambitious about these stocks’ future performance? On one hand, high target prices compared to current trading levels can signify confidence in future success. On the other hand, if those forecasts fail to materialize, downgrades may follow. Investors are encouraged to conduct further research to better understand these valuations and the factors driving them.
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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.