Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Prudential share price more attractive?
- AlphaValue upgrades to Buy with a target price of 1913p.
- Consensus: 14 Buys, 7 Holds, 1 Sell; Avg target: 1958p (Source: Bloomberg).
- Current share price 1600p (at time of writing).
- Will the shares turn back, or will they rally back to prior highs of 1683p?
- Shares -10.6% from 2019 highs; +19.8% from 2019 lows; +14.1% 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 1600p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Prudential share price rises to 1683p prior highs (+5%). Your profit would be £500 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Prudential shares break lower, they fall 2% and hit your stop-loss. Your loss would be £200.
This is provided for information purposes only. It should not be taken as a recommendation.