For the iShares Russell 1000 Growth ETF (NYSE:IWF), we found that the implied analyst target price for the ETF based upon its underlying holdings is $188.55 per unit. With IWF trading at a recent price near $169.68 per unit, that means that analysts see 11.12% upside for this ETF looking through to the average analyst targets of the underlying holdings.
Three of IWF's underlying holdings with notable upside to their analyst target prices are PRA Health Sciences (NASDAQ:PRAH), Teradata Corp (NYSE:TDC), and Hill-Rom (NYSE:HRC). Although PRAH has traded at a recent price of $86.64/share, the average analyst target is 19.60% higher at $103.62/share. Similarly, TDC has 18.30% upside from the recent share price of $23.14 if the average analyst target price of $27.38/share is reached, and analysts on average are expecting HRC to reach a target price of $124.12/share, which is 17.30% above the recent price of $105.82. Below is a twelve-month price history chart comparing the stock performance of PRAH, TDC, and HRC:
Below is a summary table of the current analyst target prices discussed above:
| Name | Symbol | Recent Price | Avg. Analyst 12-Mo. Target (NYSE:TGT) | % Upside to Target |
|---|---|---|---|---|
| iShares Russell 1000 Growth ETF | IWF | $169.68 | $188.55 | 11.12% |
| PRA Health Sciences Inc | PRAH | $86.64 | $103.62 | 19.60% |
| Teradata Corp | TDC | $23.14 | $27.38 | 18.30% |
| Hill-Rom Holdings, Inc. | HRC | $105.82 | $124.12 | 17.30% |
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.