Does this Upgrade present an opportunity for you?

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

• The chart shows the Vodafone share price movements since 2013.
• Shares -31.4% from 2018 highs; +1.1% from 2018 lows; -30.2% year-to date
• New Street Research upgraded Vodafone to Buy, and reiterated its 175p target.
• Consensus summary: 19 Buys, 5 Holds, 6 Sell; Average target: 212p (Source: Bloomberg).
• Current share price 163.9p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 200p?

Click to enlarge

Trading Vodafone – An Example

Let’s say you think that Vodafone shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 164p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Vodafone share price rises to 200p (+22%). Your profit would be £2200 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. Vodafone shares continue their downtrend, they fall 5% 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.