Does this Upgrade present an opportunity for you?

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

• The chart shows the AB Foods share price movements since late July.
• Shares -21.9% from 2018 highs; +3.8% from 2018 lows; -19.2% year-to date
• Berenberg has upgraded AB Foods to Buy (from Hold),
• Berenberg revised its target price to 2800p (from 3000p).
• Consensus summary: 16 Buys, 4 Holds, 1 Sell; Average target: 2768p (Source: Bloomberg).
• Current share price 2279p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards recent 2474p highs?

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Trading AB Foods – An Example

Let’s say you think that AB Foods shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2279p. To do this, you need £2,000.

For the purpose of this example, let’s assume the AB Foods share price rises to 2474p (+8.6%). Your profit would be £860 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. AB Foods shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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