Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Ultra Electronic share price more attractive?
- Peel Hunt starts coverage at Add, with a target of 1450p.
- Consensus summary: 3 Buys, 4 Holds, 2 Sell; Average target: 1617p (Source: Bloomberg).
- Current share price 1330p (at time of writing).
- Shares -7.7% from 2019 highs; +3.9% from 2019 lows; +2.4% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Ultra Electronic – An Example
Let’s say you think that Ultra Electronic shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ultra Electronic using a CFD, at the current price of 1330p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Ultra Electronic share price rises to 1425p Jan highs (+7.1%). Your profit would be £710 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. Ultra Electronic shares 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.