Does this Upgrade present an opportunity for you?

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

• The chart shows the Metro Bank share price movements over the last 6 months.
• Shares -30.3% from 2018 highs; +5.7% from 2018 lows; -20.5% year-to date
• SocGen starts coverage of Metro Bank with a Buy and 3600p target.
• Consensus summary: 4 Buys, 4 Holds, 5 Sell; Average target: 3178p (Source: Bloomberg).
• Current share price 2849p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 3510p July highs?

Click to enlarge

Trading Metro Bank  – An Example

Let’s say you think that Metro Bank shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 2849p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Metro Bank share price rises to 3510p (+23.2%). Your profit would be £2320 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. Metro Bank shares continue their downtrend, they fall 5% and hit your stop-loss. Your loss would be £500.

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