September 21, 2023

Implied ESGV Analyst Target Price: $96

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 ESG U.S. Stock ETF (Symbol: ESGV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $96.38 per unit.

With ESGV trading at a recent price near $82.83 per unit, that means that analysts see 16.36% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of ESGV’s underlying holdings with notable upside to their analyst target prices are (Symbol: TSVT), Afya Ltd (Symbol: AFYA), and Atara Biotherapeutics Inc (Symbol: ATRA). Although TSVT has traded at a recent price of $20.18/share, the average analyst target is 130.43% higher at $46.50/share. Similarly, AFYA has 88.77% upside from the recent share price of $13.42 if the average analyst target price of $25.33/share is reached, and analysts on average are expecting ATRA to reach a target price of $27.50/share, which is 84.44% above the recent price of $14.91. Below is a twelve month price history chart comparing the stock performance of TSVT, AFYA, and ATRA:

TSVT, AFYA, and ATRA 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
Vanguard ESG U.S. Stock ETF ESGV $82.83 $96.38 16.36%
TSVT $20.18 $46.50 130.43%
Afya Ltd AFYA $13.42 $25.33 88.77%
Atara Biotherapeutics Inc ATRA $14.91 $27.50 84.44%

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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