Mid-Cap ETF SPMD Shows 37.8% Upside Potential

Analysts predict a 37.8% upside for the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) with notable inclusions like Fabrinet (FN), Timken Co. (TKR), and Hexcel Corp. (HXL) showing substantial growth potential. Investors should evaluate the validity of these targets.

Date: 08-04-2025

AI Rating: 7

In a recent report, the analysis of the SPDR Portfolio S&P 400 Mid Cap ETF (SPMD) indicates a promising upside potential of 37.8%, suggesting that the ETF could be undervalued. With recent trading at $45.88 per unit against an analyst target of $63.22, this outlook presents an attractive opportunity for investors looking to capitalize on mid-cap stocks.

Key Holdings Analysis: The report highlights three significant underlying holdings within SPMD—Fabrinet (FN), Timken Co. (TKR), and Hexcel Corp. (HXL)—all of which indicate substantial upside to their current prices. Fabrinet trades at $178.70 with an average target of $267.57, presenting a potential upside of 49.73%. Timken Co. and Hexcel Corp. have upsides of 48.76% and 46.28% respectively, further emphasizing the positive sentiment surrounding these stocks.

A Deeper Assessment: While this data paints an optimistic picture, it is important for investors to assess whether these targets are backed by solid fundamentals and current market conditions. Analysts often revise their estimates based on more recent performance data and macroeconomic indicators, which could heighten the risk of price target downgrades if economic conditions shift or company performance falters.

This analysis focuses primarily on stock price expectations rather than earnings or revenue figures, which are critical elements for evaluating the financial health of these companies. It's essential for investors to conduct further research into the operational performance and market trends impacting these firms.

Stocks: SPMD FN TKR HXL