Sum Up The Parts: NANR Could Be Worth $59

By Metals Channel Staff, Thursday, February 22, 10:04 AM ET

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 North American Natural Resources ETF (NYSE:NANR), we found that the implied analyst target price for the ETF based upon its underlying holdings is $58.77 per unit.

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With NANR trading at a recent price near $48.85 per unit, that means that analysts see 20.30% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of NANR's underlying holdings with notable upside to their analyst target prices are Newmont Corp (NYSE:NEM), Franco-Nevada Corp (NYSE:FNV), and West Fraser Timber Co Ltd (NYSE:WFG). Although NEM has traded at a recent price of $33.43/share, the average analyst target is 54.62% higher at $51.69/share. Similarly, FNV has 34.29% upside from the recent share price of $107.24 if the average analyst target price of $144.01/share is reached, and analysts on average are expecting WFG to reach a target price of $102.30/share, which is 29.72% above the recent price of $78.86. Below is a twelve month price history chart comparing the stock performance of NEM, FNV, and WFG:

NEM, FNV, and WFG Relative Performance Chart

Combined, NEM, FNV, and WFG represent 10.22% of the SPDR S&P North American Natural Resources ETF. 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
SPDR S&P North American Natural Resources ETF	NANR	$48.85	$58.77	20.30%
Newmont Corp	NEM	$33.43	$51.69	54.62%
Franco-Nevada Corp	FNV	$107.24	$144.01	34.29%
West Fraser Timber Co Ltd	WFG	$78.86	$102.30	29.72%

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.

The average analyst target price data upon which this article was based, is courtesy of data provided by Zacks Investment Research via Quandl.com.
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This Article's Word Cloud: American Analyst Below Corp ETFs FREEGet Franco Fraser NANR NYSE Natural Nevada Newmont North Resources SPDR Target Timber Upside West With Zacks about above analyst analysts average background based border bottom color data font from hctblstyle holdings latest mdash price recent report research share target targets that trading underlying upside

Sum Up The Parts: NANR Could Be Worth $59

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