Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the SIG share price more attractive?
- Goodbody upgrades to Buy (from Hold), with a 150p target.
- Consensus: 5 Buys, 8 Holds, 3 Sell; Avg target: 135p (Source: Bloomberg).
- Current share price 132p (at time of writing).
- Will the shares turn back, or will the upgrade push them towards 146p May highs?
- Shares -2% from 2019 highs; +25.9% from 2019 lows; +21.2% year-to date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading SIG – An Example
Let’s say you think that SIG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of SIG using a CFD, at the current price of 132p. To do this, you need £2,000.
For the purpose of this example, let’s assume the SIG share price rises to 146p May highs (+10.6%). Your profit would be £1060 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Rio Tinto shares fall 3% and hit your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.