Analysts Forecast 15% Gains Ahead For The Holdings of VNQ

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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 Vanguard Real Estate ETF (Symbol: VNQ), we found that the implied analyst target price for the ETF based upon its underlying holdings is $111.38 per unit.

With VNQ trading at a recent price near $97.06 per unit, that means that analysts see 14.76% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of VNQ’s underlying holdings with notable upside to their analyst target prices are Cushman & Wakefield PLC (Symbol: CWK), Global Net Lease Inc (Symbol: GNL), and Gladstone Land Corp (Symbol: LAND). Although CWK has traded at a recent price of $16.61/share, the average analyst target is 31.94% higher at $21.92/share. Similarly, GNL has 24.74% upside from the recent share price of $14.43 if the average analyst target price of $18.00/share is reached, and analysts on average are expecting LAND to reach a target price of $31.80/share, which is 23.30% above the recent price of $25.79. Below is a twelve month price history chart comparing the stock performance of CWK, GNL, and LAND:

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
Vanguard Real Estate ETF VNQ $97.06 $111.38 14.76%
Cushman & Wakefield PLC CWK $16.61 $21.92 31.94%
Global Net Lease Inc GNL $14.43 $18.00 24.74%
Gladstone Land Corp LAND $25.79 $31.80 23.30%

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.

10 ETFs With Most Upside To Analyst Targets »

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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