The Math Shows FTLS Can Go To $84

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 First Trust Long/Short Equity ETF (Symbol: FTLS), we found that the implied analyst target price for the ETF based upon its underlying holdings is $84.44 per unit.

With FTLS trading at a recent price near $69.55 per unit, that means that analysts see 21.41% upside for this ETF looking through to the average analyst targets of the underlying holdings. Three of FTLS’s underlying holdings with notable upside to their analyst target prices are Mineralys Therapeutics Inc (Symbol: MLYS), Qnity Electronics, Inc. (Symbol: Q), and Life360 Inc (Symbol: LIF). Although MLYS has traded at a recent price of $23.28/share, the average analyst target is 114.78% higher at $50.00/share. Similarly, Q has 108.74% upside from the recent share price of $111.94 if the average analyst target price of $233.67/share is reached, and analysts on average are expecting LIF to reach a target price of $75.97/share, which is 93.45% above the recent price of $39.27. Below is a twelve month price history chart comparing the stock performance of MLYS, Q, and LIF:

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
First Trust Long/Short Equity ETF	FTLS	$69.55	$84.44	21.41%
Mineralys Therapeutics Inc	MLYS	$23.28	$50.00	114.78%
Qnity Electronics, Inc.	Q	$111.94	$233.67	108.74%
Life360 Inc	LIF	$39.27	$75.97	93.45%

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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Also see:

• Consumer Goods Dividend Stock List
• Institutional Holders of FOXW
• Materials Dividend Stock List

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