Does this Upgrade present an opportunity for you?

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

• The chart shows the Dechra Pharma share price since September.
• Stifel upgrades Dechra Pharma to Buy.
• Consensus summary: 4 Buys, 3 Holds, 0 Sell; Average target: 2784p (Source: Bloomberg).
• Current share price 2316p (at time of writing).
• Latest results (19 Oct) came in-line with market expectations.
• Will the shares turn back, or will the upgrade push the shares back towards recent high of 2516p?
• Shares -32% from 2018 highs; +10% from 2018 lows; +10% year-to date

Click to enlarge

Trading Dechra Pharma – An Example

Let’s say you think that Dechra Pharma shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Dechra Pharma using a CFD, at the current price of 2316p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Dechra Pharma share price rises to 2516p (+8.6%). Your profit would be £860 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. Dechra Pharma 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.