Does this Upgrade present an opportunity for you?

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

• The chart shows Next’s share price movements since late April.
• Shares -11.3% from 2018 highs; +23.1% from 2018 lows; -22.9% year-to date
• Goldman Sachs has upgraded Next to Neutral from (from Sell)
• It has also increased its price target to 5800p (from 5675p).
• Consensus summary: 4 Buys, 12 Holds, 6 Sell; Average target: 5503p (Source: Bloomberg).
• Current share price 5561p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 6195p Jun/Jul highs?
• Yesterday (25 Sept) Next raised its profits guidance, after a very strong summer

Click to enlarge

Trading Next – An Example

Let’s say you think that Next  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Next  using a CFD, at the current price of 5563p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Next share price rises to 6195p (+11.3%). Your profit would be £1136 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. Next shares continue their July 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.