The Online Investor

How The Pieces Add Up: IWB Targets $285

By The Online Investor Staff, Tuesday, May 24, 7:19 AM ET

Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we have compared the trading price of each holding against the average analyst 12-month forward target price, and computed the weighted average implied analyst target price for the ETF itself. For the iShares Russell 1000 ETF (NYSE:IWB), we found that the implied analyst target price for the ETF based upon its underlying holdings is $285.13 per unit.

With IWB trading at a recent price near $218.73 per unit, that means that analysts see 30.36% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IWB's underlying holdings with notable upside to their analyst target prices are Ultragenyx Pharmaceutical Inc (NASDAQ:RARE), Wix.com Ltd. (NASDAQ:WIX), and Agilon Health Inc (NYSE:AGL). Although RARE has traded at a recent price of $47.94/share, the average analyst target is 164.59% higher at $126.85/share. Similarly, WIX has 121.21% upside from the recent share price of $66.93 if the average analyst target price of $148.06/share is reached, and analysts on average are expecting AGL to reach a target price of $34.00/share, which is 76.81% above the recent price of $19.23. Below is a twelve month price history chart comparing the stock performance of RARE, WIX, and AGL:

RARE, WIX, and AGL Relative Performance Chart

Below is a summary table of the current analyst target prices discussed above:

Name Symbol Recent Price Avg. Analyst 12-Mo. Target % Upside to Target
iShares Russell 1000 ETF IWB $218.73 $285.13 30.36%
Ultragenyx Pharmaceutical Inc RARE $47.94 $126.85 164.59%
Wix.com Ltd. WIX $66.93 $148.06 121.21%
Agilon Health Inc AGL $19.23 $34.00 76.81%

Are analysts justified in these targets, or overly optimistic about where these stocks will be trading 12 months from now? Do the analysts have a valid justification for their targets, or are they behind the curve on recent company and industry developments? A high price target relative to a stock's trading price can reflect optimism about the future, but can also be a precursor to target price downgrades if the targets were a relic of the past. These are questions that require further investor research.

The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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This Article's Word Cloud:   Agilon   Analyst   Below   ETFs   FREEGet   Health   NYSE   Pharmaceutical   RARE   Russell   Target   Ultragenyx   Upside   With   Zacks   about   above   analyst   analysts   average   background   based   border   bottom   color   data   font   from   have   hctblstyle   holdings   iShares   implied   latest   mdash   month   padding   price   prices   recent   report   research   share   solid   target   targets   that   trading   underlying   upside

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