Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Ocado share price more attractive?
- AlphaValue upgrades to Add (from Reduce), with a price target of 981p.
- Consensus summary: 7 Buys, 9 Holds, 2 Sells; Average target: 896p (Source: Bloomberg).
- Current share price 891p (at time of writing).
- Shares now trade -16.1% from 2019 highs; +13.1% from 2019 lows; +12.75% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ocado – An Example
Let’s say you think that Ocado shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 891p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Ocado share price rises to February high of 1041p (+16.8%). Your profit would be £1680 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. Ocado shares continue their downtrend, 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.