PSI's Underlying Holdings Imply 41% Gain PotentialBy 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 Invesco Dynamic Semiconductors ETF (NYSE:PSI), we found that the implied analyst target price for the ETF based upon its underlying holdings is $154.32 per unit.
With PSI trading at a recent price near $109.37 per unit, that means that analysts see 41.10% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of PSI's underlying holdings with notable upside to their analyst target prices are Camtek Ltd (NASDAQ:CAMT), Nova Ltd (NASDAQ:NVMI), and MACOM Technology Solutions Holdings Inc (NASDAQ:MTSI). Although CAMT has traded at a recent price of $27.86/share, the average analyst target is 46.56% higher at $40.83/share. Similarly, NVMI has 42.77% upside from the recent share price of $101.74 if the average analyst target price of $145.25/share is reached, and analysts on average are expecting MTSI to reach a target price of $73.27/share, which is 41.18% above the recent price of $51.90. Below is a twelve month price history chart comparing the stock performance of CAMT, NVMI, and MTSI:
Combined, CAMT, NVMI, and MTSI represent 8.16% of the Invesco Dynamic Semiconductors ETF. Below is a summary table of the current analyst target prices discussed above:
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.
This Article's Word Cloud: Analyst Below CAMT Camtek Dynamic ETFs FREEGet Holdings Invesco MACOM MTSI NVMI Nova Semiconductors Solutions Target Technology Upside With Zacks about above analyst analysts average background based border bottom color data font from have hctblstyle holdings implied latest mdash price recent report research share target targets that trading underlying upside