Prudential
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Prudential share price more attractive?
- Day by Day upgrades to Buy with a target price of 1900p.
- Consensus: 15 Buys, 6 Holds, 1 Sell; Avg target: 1914p (Source: Bloomberg).
- Current share price 1739p (at time of writing).
- Will the shares turn back, or will they rally back to prior highs of 1955p?
- Shares -0.3% from 2019 highs; +30.3% from 2019 lows; +24.1% year-to date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Prudential – An Example
Let’s say you think that Prudential shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1739p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Prudential share price rises to 1955p prior highs (+12.4%). Your profit would be £1240 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. Prudential shares break lower, 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.