Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the International Consolidated Airlines share price more attractive?

• The chart shows the International Consolidated Airlines (IAG) share price movements over the last 2 months.
• GVC Gaesco Beka upgrades IAG to Accumulate with a target of 699.48p
• Consensus summary: 20 Buys, 10 Holds, 2 Sell; Average target: 743p (Source: Bloomberg).
• Current share price 602p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards Summer highs of 726p?
• Shares -16.4% from 2018 highs; +3.8% from 2018 lows; -7.5% year-to date

Click to enlarge

Trading IAG – An Example

Let’s say you think that IAG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 602p. To do this, you need £2,000.

For the purpose of this example, let’s assume the IAG share price rises to 726p (+20.5%). Your profit would be £2,050 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. IAG shares continue their 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.