Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Thomas Cook share price attractive?

• The chart shows Thomas Cook’s share price movements since May 2016.
• Shares -59.8% from 2018 highs; +7.6% from 2018 lows; -51.1% year-to date
• UBS upgraded Thomas Cook to Neutral and trimmed its target price to 60p (from 85p).
• Consensus summary: 10 Buys, 3 Holds, 3 Sell; Average target: 103p (Source: Bloomberg).
• Current share price 60p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 149p May highs?

Click to enlarge

Trading Thomas Cook – An Example

Let’s say you think that Thomas Cook shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Thomas Cook using a CFD, at the current price of 60p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Thomas Cook share price rises to 85p September highs (+41.6%). Your profit would be £4,160 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Thomas Cook shares continue their July downtrend, they fall 10% and hit your stop-loss. Your loss would be £1,000.

This is provided for information purposes only. It should not be taken as a recommendation.