Does this Upgrade present an opportunity for you?

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

• The chart shows the Segro share price since February.
• Numis upgrades Segro to Add, maintaining target price at 712p.
• Consensus summary: 12 Buys, 4 Holds, 2 Sell; Average target: 707p (Source: Bloomberg).
• Current share price 619p (at time of writing).
• Latest trading update pleased investors, as total rents rose +42% YoY and the company said it was optimistic for the rest of 2018 and into 2019..
• According to analysts at Liberum (17 Oct), Segro is benefiting from buoyant demand for industrial real estate.
• Will the shares turn back, or will the upgrade push the shares back towards 10-year highs of 682p?
• Shares -10.64% from 2018 highs; +11.6% from 2018 lows; +5.62% year-to date

Click to enlarge

Trading Segro – An Example

Let’s say you think that Segro shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Segro using a CFD, at the current price of 619p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Segro share price rises to 682p (+10.1%). Your profit would be £1,010 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. Segro 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.