Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the ASOS share price more attractive?
- AlphaValue upgrades to Add, with a target of 3277p.
- Consensus summary: 17 Buys, 6 Holds, 3 Sell; Average target: 3746p (Source: Bloomberg).
- Current share price 3033p (at time of writing).
- Shares -61.3% from 2018 highs; +42.4% from 2018 lows; +33.2% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading ASOS – An Example
Let’s say you think that ASOS shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 3033p. To do this, you need £2,000.
For the purpose of this example, let’s assume the ASOS share price rises to 3277p (+8.0%). Your profit would be £800 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. ASOS shares fall 3% and hit your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.