Is it irrelevant, or will the Upgrade make the Funding Circle share price more attractive?

• Peel Hunt upgraded to Neutral, with a target of 6950.
• Consensus summary: 0 Buys, 0 Holds, 0 Sell; Average target: 376p (Source: Bloomberg).
• Current share price 318p (at time of writing).
• Will the upgrade push the shares back towards recent highs of 397p? (+21%)
• Shares -23% from 2019 highs; +7% from 2019 lows; -14% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Funding Circle – An Example

Let’s say you think that Funding Circle shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Funding Circle  using a CFD, at the current price of 6255p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Funding Circle share price rises recent highs 397p (+21%). Your profit would be £2100from 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. Funding Circle  shares break lower, they 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.