FTY's Holdings Could Mean 14% 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 iShares Core U.S. REIT ETF ( FTY), we found that the implied analyst target price for the ETF based upon its underlying holdings is $52.81 per unit.

START SLIDESHOW:
10 ETFs With Most Upside To Analyst Targets »

With FTY trading at a recent price near $46.40 per unit, that means that analysts see 13.81% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTY's underlying holdings with notable upside to their analyst target prices are Acadia Realty Trust ( AKR), Ramco-Gershenson Properties Trust ( RPT), and Bluerock Residential Growth REIT Inc ( BRG). Although AKR has traded at a recent price of $33.41/share, the average analyst target is 15.98% higher at $38.75/share. Similarly, RPT has 14.43% upside from the recent share price of $17.15 if the average analyst target price of $19.62/share is reached, and analysts on average are expecting BRG to reach a target price of $15.00/share, which is 14.42% above the recent price of $13.11. Below is a twelve month price history chart comparing the stock performance of AKR, RPT, and BRG:

AKR, RPT, and BRG Relative Performance Chart

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 Core U.S. REIT ETF FTY $46.40 $52.81 13.81%
Acadia Realty Trust AKR $33.41 $38.75 15.98%
Ramco-Gershenson Properties Trust RPT $17.15 $19.62 14.43%
Bluerock Residential Growth REIT Inc BRG $13.11 $15.00 14.42%

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 AKR — FREE
Get the latest Zacks research report on RPT — FREE
Get the latest Zacks research report on BRG — FREE

If you liked this article you might like

Six Oilfield-Services Providers Poised to Prosper as the Energy Business Rebounds

Six Oilfield-Services Providers Poised to Prosper as the Energy Business Rebounds

Real Estate ETFs to Avoid in Double Dip

Real Estate ETFs to Avoid in Double Dip

Tuesday's ETF Winners & Losers

Tuesday's ETF Winners & Losers

Wednesday's ETF Winners & Losers

Wednesday's ETF Winners & Losers