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Home / Upgrades / Downgrades / Centrica (owner of British Gas)

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Centrica (owner of British Gas)

Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Centrica’s share price attractive?

  • The chart shows Centrica’s share price movements since May.
  • HSBC has upgraded Centrica to a Hold, with a target price at 140p
  • Consensus summary: 10 Buys, 5 Holds, 2 Sells; Average target: 159.42p (Source: Bloomberg)
  • Current share price is 132p (at time of writing)
  • Will the shares turn back, or will the upgrade push the shares back towards 156p November highs?
  • Shares -21.7% from 2018 highs; +4.7% from 2018 lows; -3.2% year-to date
  • Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Centrica – An Example

Let’s say you think that Centrica shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 132p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Centrica share price rises to 156p (+18.1%). Your profit would be £1810, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Centrica shares continue falling as a result of the downgrade, they fall 7% and hit your stop-loss. Your loss would be £700.

This is provided for information purposes only. It should not be taken as a recommendation.

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.


Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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