Does this Upgrade present an opportunity for you?

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

• The chart shows the Johnson Matthey share price since March.
• AlphaValue upgrades Johnson Matthey to Add, adjusting the target price of 3,225p (from 3,256p).
• Consensus summary: 9 Buys, 7 Holds, 1 Sell; Average target: 3,991p (Source: Bloomberg).
• Current share price 2,968p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 3,617p falling highs?
• Shares -24.8% from 2018 highs; now trading at 2018 lows; -3.5% year-to date

Click to enlarge

Trading Johnson Matthey – An Example

Let’s say you think that Johnson Matthey shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Johnson Matthey using a CFD, at the current price of 2,968p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Johnson Matthey share price rises to 3,617p (+21.8%). Your profit would be £2,180 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Johnson Matthey shares continue their downtrend, they fall 9% and hit your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.