AGT's Holdings Could Mean 43% Gain Potential
ETF Channel Staff - Wednesday, March 4, 8:25 AMLooking 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 MSCI Argentina and Global Exposure ETF (AGT), we found that the implied analyst target price for the ETF based upon its underlying holdings is $30.09 per unit.
With AGT trading at a recent price near $20.99 per unit, that means that analysts see 43.33% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of AGT's underlying holdings with notable upside to their analyst target prices are IRSA Inversiones y Representaciones S.A. (IRS), Pampa Energia SA (PAM), and Empresa Distribuidora y Comercializadora Norte SA Edenor (EDN). Although IRS has traded at a recent price of $5.42/share, the average analyst target is 84.50% higher at $10.00/share. Similarly, PAM has 71.26% upside from the recent share price of $13.43 if the average analyst target price of $23.00/share is reached, and analysts on average are expecting EDN to reach a target price of $8.00/share, which is 70.21% above the recent price of $4.70. Below is a twelve month price history chart comparing the stock performance of IRS, PAM, and EDN:
Combined, IRS, PAM, and EDN represent 5.56% of the iShares MSCI Argentina and Global Exposure 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|
|iShares MSCI Argentina and Global Exposure ETF ||AGT ||$20.99 ||$30.09 ||43.33%|
|IRSA Inversiones y Representaciones S.A. ||IRS ||$5.42 ||$10.00 ||84.50%|
|Pampa Energia SA ||PAM ||$13.43 ||$23.00 ||71.26%|
|Empresa Distribuidora y Comercializadora Norte SA Edenor ||EDN ||$4.70 ||$8.00 ||70.21%|
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.
Get the latest Zacks research report on IRS — FREE
Get the latest Zacks research report on PAM — FREE
Get the latest Zacks research report on EDN — FREE