Weir Group
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Weir Group share price more attractive?
- The chart shows the Weir Group share price since late April.
- SocGen has upgraded Weir Group to Buy, with a price target of 1750p
- Consensus summary: 17 Buys, 4 Holds, 0 Sell; Average target: 1829p (Source: Bloomberg).
- Current share price 1398p (at time of writing).
- Will the shares turn back, or will the upgrade push the shares back towards 1800p Sept highs?
- Shares -40.7% from 2018 highs; +13.2% from 2018 lows; +7.6% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Weir Group – An Example
Let’s say you think that Weir shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Weir using a CFD, at the current price of 1398p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Weir share price rises to 1800p Sept highs (+28.7%). Your profit would be £2870 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Weir shares fall 5% and hit your stop-loss. Your loss would be £500.
This is provided for information purposes only. It should not be taken as a recommendation.