Looking at the underlying holdings of the ETFs in our coverage universe at ETF Channel, we compared each holding’s trading price against the average analyst 12-month forward target price, and calculated the weighted implied analyst target price for the ETF itself. For the iShares Russell 1000 Growth ETF (Symbol: IWF), we found that the implied analyst target price for the ETF based on its underlying holdings is $316.01 per unit.
With IWF trading at a recent price near $281.56 per unit, that means analysts see a 12.23% upside for this ETF looking at the average analyst targets of the underlying holdings. Three of IWF’s underlying holdings with notable upside to their analyst target prices are Lyft Inc (Symbol: LYFT ), nCino Inc (Symbol: NCNO ), and Doximity Inc (Symbol: DOCS ). Although LYFT traded at a recent price of $9.77/share, the average analyst target is 27.18% higher at $12.43/share. Similarly, NCNO has 21.08% upside from the recent share price of $27.93 if the average analyst target price of $33.82/share is reached, and analysts on average expect DOCS to reach a target price of $27.82/share , which is 16.49% above the. recent price of $23.88. Below is a twelve month price history chart comparing the stock performance of LYFT, NCNO and DOCS:
![LYFT, NCNO, and DOCS Relative Performance Chart](https://www.nasdaq.com/sites/acquia.prod/files/styles/710x400/public/22135687411.gif)
name | Symbol | Recent Price | Avg. Analyst 12-Mo. Purpose | % Up to Target |
---|---|---|---|---|
iShares Russell 1000 Growth ETF | IWF | $281.56 | $316.01 | 12.23% |
Lyft Inc | LYFT | $9.77 | $12.43 | 27.18% |
nCino Inc | NCNO | $27.93 | $33.82 | 21.08% |
Doximity Inc | DOCUMENTS | $23.88 | $27.82 | 16.49% |
Are analysts justified in these targets, or overly optimistic about where these stocks will trade 12 months from now? Do the analysts have a valid justification for their goals, 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 a target price decrease if the targets were a relic of the past. These are questions that require further investment research.