The Online Investor

PSI's Underlying Holdings Imply 41% Gain Potential

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 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:

CAMT, NVMI, and MTSI Relative Performance Chart

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:

Name Symbol Recent Price Avg. Analyst 12-Mo. Target % Upside to Target
Invesco Dynamic Semiconductors ETF PSI $109.37 $154.32 41.10%
Camtek Ltd CAMT $27.86 $40.83 46.56%
Nova Ltd NVMI $101.74 $145.25 42.77%
MACOM Technology Solutions Holdings Inc MTSI $51.90 $73.27 41.18%

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
Get the latest Zacks research report on CAMT — FREE
Get the latest Zacks research report on NVMI — FREE
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Find the right mix of model portfolios today at

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

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