How The Pieces Add Up: IEO Targets $109
Nasdaq 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 U.S. Oil & Gas Exploration & Production ETF (Symbol: IEO), we found that the implied analyst target price for the ETF based upon its underlying holdings is $109.02 per unit.
With IEO trading at a recent price near $84.86 per unit, that means that analysts see 28.47% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of IEO's underlying holdings with notable upside to their analyst target prices are Callon Petroleum Co. (Symbol: CPE), Cheniere Energy Inc. (Symbol: LNG), and Par Pacific Holdings Inc (Symbol: PARR). Although CPE has traded at a recent price of $34.38/share, the average analyst target is 60.69% higher at $55.24/share. Similarly, LNG has 35.10% upside from the recent share price of $145.24 if the average analyst target price of $196.21/share is reached, and analysts on average are expecting PARR to reach a target price of $31.20/share, which is 29.84% above the recent price of $24.03. Below is a twelve month price history chart comparing the stock performance of CPE, LNG, and PARR:
