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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 SPDR S&P 400 Mid Cap Value ETF (Symbol: MDYV), we found that the implied analyst target price for the ETF based upon its underlying holdings is $79.64 per unit.

With MDYV trading at a recent price near $71.57 per unit, that means that analysts see 11.27% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of MDYV's underlying holdings with notable upside to their analyst target prices are Gaming & Leisure Properties, Inc (Symbol: GLPI), Silgan Holdings Inc (Symbol: SLGN), and Valmont Industries Inc (Symbol: VMI). Although GLPI has traded at a recent price of $46.93/share, the average analyst target is 14.09% higher at $53.54/share. Similarly, SLGN has 13.98% upside from the recent share price of $43.43 if the average analyst target price of $49.50/share is reached, and analysts on average are expecting VMI to reach a target price of $261.33/share, which is 13.95% above the recent price of $229.35. Below is a twelve month price history chart comparing the stock performance of GLPI, SLGN, and VMI:

Below is a summary table of the current analyst target prices discussed above:

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.

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