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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 iShares ESG MSCI USA Leaders ETF (Symbol: SUSL), we found that the implied analyst target price for the ETF based upon its underlying holdings is $111.91 per unit.

With SUSL trading at a recent price near $101.89 per unit, that means that analysts see 9.83% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of SUSL's underlying holdings with notable upside to their analyst target prices are Bath & Body Works Inc (Symbol: BBWI), Albertsons Companies Inc (Symbol: ACI), and Enphase Energy Inc. (Symbol: ENPH). Although BBWI has traded at a recent price of $31.22/share, the average analyst target is 31.33% higher at $41.00/share. Similarly, ACI has 29.89% upside from the recent share price of $18.30 if the average analyst target price of $23.77/share is reached, and analysts on average are expecting ENPH to reach a target price of $128.08/share, which is 29.12% above the recent price of $99.19. Below is a twelve month price history chart comparing the stock performance of BBWI, ACI, and ENPH:

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.