IAG (owner of British Airways)
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the BA-owner IAG share price more attractive?
- RBC upgrades to Outperform, with a target price of 650p.
- Consensus: 20 Buys, 7 Holds, 5 Sell; Avg target: 697p (Source: Bloomberg).
- Current share price 531p (at time of writing).
- Will the shares turn back, or will the upgrade push them towards 666p recent highs?
- Shares -20.4% from 2019 highs; +0.6% from 2019 lows; -13.9% year-to date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading British Airways owner IAG – An Example
Let’s say you think that IAG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 531p. To do this, you need £2,000.
For the purpose of this example, let’s assume the IAG share price rises to 666p recent highs (+25%). Your profit would be £2500 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. IAG shares fall 5% and hit your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.