Sainsbury
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Sainsbury share price more attractive?
- The chart shows the Sainsbury share price since March.
- Morningstar upgrades Sainsbury to Buy, adjusting the target price of 360p.
- Consensus summary: 8 Buys, 7 Holds, 4 Sell; Average target: 327.23p (Source: Bloomberg).
- Current share price 278.6p (at time of writing).
- Will the shares turn back, or will the upgrade push the shares back towards 320p November highs?
- Shares -19.6% from 2018 highs; +22.4% from 2018 lows; +15.4% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Sainsbury – An Example
Let’s say you think that Sainsbury shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Sainsbury using a CFD, at the current price of 278.6p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Sainsbury share price rises to 320p (+15.1%). Your profit would be £1510 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Sainsbury shares continue their downtrend, they fall 6% and hit your stop-loss. Your loss would be £600.
This is provided for information purposes only. It should not be taken as a recommendation.