Does this Upgrade present an opportunity for you?

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

• The chart shows the Ocado share price movements over the last 2 months.
• Barclays upgrades Ocado to Equalweight with a reiterated target of 875p.
• Analysts at Barclays say the online grocer’s shares offer good value.
• Consensus summary: 7 Buys, 8 Holds, 3 Sell; Average target: 1,011.79p (Source: Bloomberg).
• Current share price 791p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards Summer highs around 1,151p?
• Shares -33% from 2018 highs; +99% from 2018 lows; +99% year-to date

Click to enlarge

Trading Ocado – An Example

Let’s say you think that Ocado shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 791p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ocado share price rises to 1,151p (+45.5%). Your profit would be £4,550 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. Ocado 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.