Add Up The Parts: ADRD Could Be Worth $22

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 BLDRS Developed Markets 100 ADR Index Fund ETF ( ADRD), we found that the implied analyst target price for the ETF based upon its underlying holdings is $21.94 per unit.

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

With ADRD trading at a recent price near $19.42 per unit, that means that analysts see 12.96% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of ADRD's underlying holdings with notable upside to their analyst target prices are Cellectis SA ( CLLS), Teva Pharmaceutical Industries Ltd ( TEVA), and British American Tobacco plc ( BTI). Although CLLS has traded at a recent price of $16.86/share, the average analyst target is 190.01% higher at $48.90/share. Similarly, TEVA has 52.96% upside from the recent share price of $37.70 if the average analyst target price of $57.67/share is reached, and analysts on average are expecting BTI to reach a target price of $147.09/share, which is 34.90% above the recent price of $109.04. Below is a twelve month price history chart comparing the stock performance of CLLS, TEVA, and BTI:

CLLS, TEVA, and BTI 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
BLDRS Developed Markets 100 ADR Index Fund ETF ADRD $19.42 $21.94 12.96%
Cellectis SA CLLS $16.86 $48.90 190.01%
Teva Pharmaceutical Industries Ltd TEVA $37.70 $57.67 52.96%
British American Tobacco plc BTI $109.04 $147.09 34.90%

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 CLLS — FREE
Get the latest Zacks research report on TEVA — FREE
Get the latest Zacks research report on BTI — FREE

If you liked this article you might like

ADRD Crowded With Sellers

ADRD Crowded With Sellers

Gaining ADR Exposure Through ETFs

Gaining ADR Exposure Through ETFs

How to Crack the Asia/Pacific Investment Code

How to Crack the Asia/Pacific Investment Code

PowerShares Assumes Sponsorship of Nasdaq 100 Trust

PowerShares Assumes Sponsorship of Nasdaq 100 Trust