Does this Upgrade present an opportunity for you?

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

• The chart shows the Admiral share price since August 2017.
• Goldman Sachs upgrades Admiral to Buy.
• Consensus summary: 3 Buys, 7 Holds, 9 Sell; Average target: 1,954p (Source: Bloomberg).
• Current share price 1,965p (at time of writing).
• According to analysts at Peel Hunt (1 Oct), UK motor insurers like Admiral offer better value than Lloyd’s members, with strong dividend yields (6% average vs. 2% for Lloyds’s insurers)  and scope for special payouts.
• Will the shares turn back, or will the upgrade push the shares back towards September highs of 2,136p?
• Shares -8.4% from 2018 highs; +9% from 2018 lows; -1.82% year-to date

Click to enlarge

Trading Admiral – An Example

Let’s say you think that Admiral shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Admiral  using a CFD, at the current price of 1,965p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Admiral  share price rises to 2,136p (+8.7%). Your profit would be £870 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. Admiral 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.