Ocado
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Ocado share price more attractive?
- Peel Hunt upgraded to Buy with a target price of 1700p.
- Consensus: 6 Buys, 7 Holds, 4 Sell; Avg target: 1025p (Source: Bloomberg).
- Current share price 1313p (at time of writing).
- Will the shares turn back, or will the upgrade push them towards new all-time highs?
- Shares -1.9% from 2019 highs; +69.75% from 2019 lows; +66% 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 1313p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Ocado share price rises to new record highs at 1500p (+14.2%). Your profit would be £1420 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 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.