Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Wizz Air share price more attractive?
- The chart shows the Wizz Air share price since mid-September.
- Investec has upgraded its rating to Buy and changed the target price to 3200p
- Consensus summary: 12 Buys, 6 Holds, 1 Sell; Average target: 3405p (Source: Bloomberg).
- Current share price 2925p (at time of writing).
- 7 Nov: Brokers at Goodbody say H2 revenue momentum appears strong despite the cut guidance.
- Shares -24.44% from 2018 highs; +25.65% from 2018 lows; -20.10% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Wizz Air – An Example
Let’s say you think that Wizz Air shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Wizz Air using a CFD, at the current price of 2925p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Wizz Air share price rises to September high of 3251p (+11.1%). Your profit would be £1110 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. Wizz Air shares continue their downtrend, they 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.