Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Melrose Industries share price more attractive?
- Day by Day upgrades to Buy, with a price target of 250p.
- Consensus summary: 13 Buys, 1 Holds, 0 Sell; Average target: 240p (Source: Bloomberg).
- Current share price 175p (at time of writing).
- Will the shares turn back, or will the upgrade push them towards 190p highs?
- Shares currently trade -15.1% from 2019 highs; +13.3% from 2019 lows; +6.6% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Melrose Industries – An Example
Let’s say you think that Melrose shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Melrose using a CFD, at the current price of 175p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Melrose share price rises to 190p (+8.5%). Your profit would be £850 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. Melrose 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.