Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Standard Chartered’s share price attractive?

• The chart shows Standard Chartered’s share price movements over the past 6 months.
• Morningstar has upgraded Standard Chartered to Buy (from Hold) overnight
• It has also upgraded its target price to 740p (from 719p).
• Consensus summary: 12 Buys, 9 Holds, 7 Sells; Average target: 738p (Source: Bloomberg).
• Current share price is 603p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 775p prior highs?

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Trading Standard Chartered – An Example

Let’s say you think that Standard Chartered shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Standard Chartered using a CFD, at the current price of 603p. To do this, you need £2,000.

For the purpose of this example, let’s assume Standard Chartered rises to 775p. Your profit would be £2,852, 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 at 585p. Standard Chartered’s shares continue falling in spite of the upgrade, they 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.