Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Informa share price more attractive?

• The chart shows Informa’s share price movements since April.
• Shares +15.9% from 2018 lows; -12.4% from 2018 highs; +5% year-to date
• Citigroup upgraded Informa to Buy, and improved its target price to 880p (from 760.4p)
• Consensus summary: 14 Buys, 3 Holds, 0 Sell; Average target: 904.58p (Source: Bloomberg).
• Current share price 758p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 869p July highs?

Click to enlarge

Trading Informa – An Example

Let’s say you think that Informa  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Informa  using a CFD, at the current price of 758p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Informa share price rises to 869p July highs (+14.6%). Your profit would be £1,460 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. Informa shares continue their July-August 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.