Sum Up The Parts: ZMLP Could Be Worth $21

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 Zacks MLP High Income Index Shares ETF ( ZMLP), we found that the implied analyst target price for the ETF based upon its underlying holdings is $20.72 per unit.

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With ZMLP trading at a recent price near $17.40 per unit, that means that analysts see 19.09% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of ZMLP's underlying holdings with notable upside to their analyst target prices are Golar LNG Partners LP ( GMLP), Ferrellgas Partners LP ( FGP), and Martin Midstream Partners LP ( MMLP). Although GMLP has traded at a recent price of $18.50/share, the average analyst target is 34.68% higher at $24.92/share. Similarly, FGP has 33.33% upside from the recent share price of $8.00 if the average analyst target price of $10.67/share is reached, and analysts on average are expecting MMLP to reach a target price of $21.14/share, which is 27.36% above the recent price of $16.60. Below is a twelve month price history chart comparing the stock performance of GMLP, FGP, and MMLP:

GMLP, FGP, and MMLP Relative Performance Chart

Combined, GMLP, FGP, and MMLP represent 9.62% of the Zacks MLP High Income Index Shares ETF. Below is a summary table of the current analyst target prices discussed above:

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