We Did The Math: The iShares PHLX Semiconductor ETF Can Go To $204

&l;p&g;&l;img class=&q;dam-image getty size-large wp-image-1132510671&q; src=&q;https://specials-images.forbesimg.com/dam/imageserve/1132510671/960×0.jpg?fit=scale&q; data-height=&q;640&q; data-width=&q;960&q;&g; Getty

Looking at the underlying holdings of the ETFs in our coverage universe at &l;a href=&q;https://www.etfchannel.com/&q; target=&q;_blank&q;&g;ETF Channel&l;/a&g;, 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.&a;nbsp; For the iShares PHLX Semiconductor ETF, we found that the implied analyst target price for the ETF based upon its underlying holdings is $203.59 per unit.

With SOXX trading at a recent price near $184.68 per unit, that means that analysts see 10.24% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SOXX&s;s underlying holdings with notable upside to their analyst target prices are ASML Holding, Silicon Motion Technology and Lam Research. Although ASML has traded at a recent price of $184.53/share, the average analyst target is 21.12% higher at $223.50/share. Similarly, SIMO has 12.37% upside from the recent share price of $41.48 if the average analyst target price of $46.61/share is reached, and analysts on average are expecting LRCX to reach a target price of $192.20/share, which is 10.75% above the recent price of $173.54.

Combined, ASML, SIMO, and LRCX represent 6.67% of the iShares PHLX Semiconductor ETF. Below is a summary table of the current analyst target prices discussed above:


&l;/p&g;&l;div class=&q;table-wrapper&q;&g;&l;table class=&q;hctblstyle&q; border=&q;0&q; cellspacing=&q;0&q; cellpadding=&q;0&q;&g;&l;tbody&g;&l;tr&g;&l;th&g;Name&l;/th&g; &l;th align=&q;center&q;&g;Symbol&l;/th&g; &l;th align=&q;right&q;&g;Recent Price&l;/th&g; &l;th align=&q;right&q;&g;Avg. Analyst 12-Mo. Target&l;/th&g; &l;th align=&q;right&q;&g;% Upside to Target&l;/th&g; &l;/tr&g;&l;tr&g;&l;td&g;&l;b&g;iShares PHLX Semiconductor ETF&l;/b&g;&l;/td&g; &l;td align=&q;center&q;&g;&l;b&g;SOXX&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$184.68&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;$203.59&l;/b&g;&l;/td&g; &l;td align=&q;right&q;&g;&l;b&g;10.24%&l;/b&g;&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;ASML Holding NV&l;/td&g; &l;td align=&q;center&q;&g;ASML&l;/td&g; &l;td align=&q;right&q;&g;$184.53&l;/td&g; &l;td align=&q;right&q;&g;$223.50&l;/td&g; &l;td align=&q;right&q;&g;21.12%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Silicon Motion Technology Corp&l;/td&g; &l;td align=&q;center&q;&g;SIMO&l;/td&g; &l;td align=&q;right&q;&g;$41.48&l;/td&g; &l;td align=&q;right&q;&g;$46.61&l;/td&g; &l;td align=&q;right&q;&g;12.37%&l;/td&g; &l;/tr&g;&l;tr&g;&l;td&g;Lam Research Corp&l;/td&g; &l;td align=&q;center&q;&g;LRCX&l;/td&g; &l;td align=&q;right&q;&g;$173.54&l;/td&g; &l;td align=&q;right&q;&g;$192.20&l;/td&g; &l;td align=&q;right&q;&g;10.75%&l;/td&g; &l;/tr&g;&l;/tbody&g;&l;/table&g;&l;/div&g;

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;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.

&l;a href=&q;http://www.etfchannel.com/slideshows/ten-etfs-with-most-upside/&q; target=&q;_blank&q;&g;Click here to find out 10 ETFs With Most Upside To Analyst Targets &a;raquo;&l;/a&g;

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