Provident Financial
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Provident Financial share price more attractive?
- The chart shows the Provident Financial share price since early October.
- Goodbody initiated coverage of Provident at Buy, setting the target price at 775p.
- Consensus summary: 6 Buys, 5 Holds, 0 Sell; Average target: 736.22p (Source: Bloomberg).
- Current share price 619.9p (at time of writing).
- Will the shares turn back, or will the upgrade push the shares back towards August highs of 706.6p?
- Shares -74.4% from 2018 highs; +97% from 2018 lows; -5.7% year-to date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Provident Financial – An Example
Let’s say you think that Provident Financial shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Provident Financial using a CFD, at the current price of 619.9p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Provident Financial share price rises to 706.6p (+14%). Your profit would be £1400 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Provident Financial shares continue their downtrend, they fall 4% and hit your stop-loss. Your loss would be £400.
This is provided for information purposes only. It should not be taken as a recommendation.