Does this Upgrade present an opportunity for you?

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

• The chart shows GVC’s share price movements since August.
• Shares +12.1% from 2018 lows; -19% from 2018 highs; +3.6% year-to date
• Goldman Sachs initiated coverage of GVC at Buy, setting its target price at 1,195p.
• Consensus summary: 16 Buys, 2 Holds, 0 Sell; Average target: 1,275p (Source: Bloomberg).
• Current share price 958p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 1,184p August highs?

Click to enlarge

Trading GVC– An Example

Let’s say you think that GVC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of GVC using a CFD, at the current price of 958p. To do this, you need £2,000.

For the purpose of this example, let’s assume the GVC share price rises to 1,184p August highs (+23.6%). Your profit would be £2,360 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. GVC 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.