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 SPDR S&P Software & Services ETF (XSW), we found that the implied analyst target price for the ETF based upon its underlying holdings is $60.99 per unit.With XSW trading at a recent price near $55.32 per unit, that means that analysts see 10.25% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of XSW's underlying holdings with notable upside to their analyst target prices are RingCentral Inc ( RNG), DST Systems Inc. ( DST), and Virtusa Corp ( VRTU). Although RNG has traded at a recent price of $21.55/share, the average analyst target is 33.54% higher at $28.78/share. Similarly, DST has 20.14% upside from the recent share price of $103.21 if the average analyst target price of $124.00/share is reached, and analysts on average are expecting VRTU to reach a target price of $26.62/share, which is 19.82% above the recent price of $22.22. Below is a twelve month price history chart comparing the stock performance of RNG, DST, and VRTU: 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|
|SPDR S&P Software & Services ETF||XSW||$55.32||$60.99||10.25%|
|DST Systems Inc.||DST||$103.21||$124.00||20.14%|
The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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