MLPJ's Underlying Holdings Imply 15% Gain Potential

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 Junior MLP ETF ( MLPJ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $9.19 per unit.

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With MLPJ trading at a recent price near $7.96 per unit, that means that analysts see 15.45% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MLPJ's underlying holdings with notable upside to their analyst target prices are Archrock Partners LP ( APLP), Rice Midstream Partners LP ( RMP), and Cheniere Energy Partners L P ( CQP). Although APLP has traded at a recent price of $15.48/share, the average analyst target is 40.50% higher at $21.75/share. Similarly, RMP has 27.34% upside from the recent share price of $21.36 if the average analyst target price of $27.20/share is reached, and analysts on average are expecting CQP to reach a target price of $34.86/share, which is 24.71% above the recent price of $27.95. Below is a twelve month price history chart comparing the stock performance of APLP, RMP, and CQP:

APLP, RMP, and CQP Relative Performance Chart

Combined, APLP, RMP, and CQP represent 10.85% of the Junior MLP ETF. Below is a summary table of the current analyst target prices discussed above:

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