Implied Analyst 12-Month Target for AFSM ETF at $34.82

The First Trust Active Factor Small Cap ETF (AFSM) has an implied analyst target price of $34.82 per unit, indicating 20.11% upside from its recent price of $28.99. Analysts expect RMR Group Inc, Mitek Systems, and Huron Consulting Group to reach 61.73%, 42.24%, and 22.64% above their recent prices, respectively. The average analyst target prices for these underlying holdings are $24.00, $13.10, and $170.75, respectively.

The First Trust Active Factor Small Cap ETF (AFSM) has garnered significant attention from analysts, with an implied target price of $34.82 per unit, indicating a potential 20.11% upside from its recent price of $28.99 [1]. This optimism is driven by the performance expectations of the fund's underlying holdings, including RMR Group Inc., Mitek Systems, and Huron Consulting Group.

RMR Group Inc.
Analysts expect RMR Group Inc. to reach 61.73% above its recent price, with an average target price of $24.00 [1]. This substantial upside is attributed to the company's strong financial performance and growth prospects in its core business segments.

Mitek Systems, Inc.
Mitek Systems, Inc. (MITK) is another key holding in the AFSM, with analysts predicting a 42.24% increase above its recent price of $9.55, setting an average target price of $13.10 [1]. The company's innovative mobile image capture and digital identity verification solutions, along with its strategic market positioning, are driving this optimism.

Huron Consulting Group
Huron Consulting Group is expected to rise by 22.64% above its recent price, with an average target price of $170.75 [1]. The company's strong performance in the consulting and professional services sector, coupled with its robust financial health, is contributing to this positive outlook.

Market Outlook
The strong analyst consensus for AFSM and its underlying holdings reflects the broader market optimism for the small-cap growth segment. The fund's active factor approach, which aims to outperform the market by selecting stocks with specific fundamental characteristics, aligns with the current market sentiment.

Conclusion
Investors and financial professionals should closely monitor the performance of the First Trust Active Factor Small Cap ETF and its key holdings. The significant upside potential, backed by positive analyst ratings, makes this ETF an attractive option for those seeking exposure to the small-cap growth segment. However, it is essential to conduct thorough due diligence and consider individual risk tolerance before making investment decisions.

References
[1] https://www.nasdaq.com/articles/first-trust-small-cap-growth-alphadex-etf-fyc-strong-etf-right-now-4
[2] https://www.directorstalkinterviews.com/mitek-systems-inc-mitk-stock-analysis-why-a-37-upside-could-be-on-the-horizon/4121197940