Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Boohoo share price more attractive?
- Societe Generale initiates at Buy, with a target of 285p.
- Consensus summary: 11 Buys, 7 Holds, 2 Sell; Average target: 268p (Source: Bloomberg).
- Current share price 209p (at time of writing).
- Will the upgrade push the shares towards 240p (+14%)?
- Shares -16.1% from 2019 highs; +35.4% from 2019 lows; +29.5% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Boohoo– An Example
Let’s say you think that Boohoo shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Boohoo using a CFD, at the current price of 209p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Boohoo share price rises to 240p (+14%). Your profit would be £1400 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. Boohoo 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.