Does this Upgrade present an opportunity for you?

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

• The chart shows the Lloyds Banking share price since January.
• Macquarie upgrades Lloyds Banking to Neutral from Underperform,
• Target price was adjusted to 57p (from 54p).
• Consensus summary: 14 Buys, 9 Holds, 4 Sell; Average target: 74.60p (Source: Bloomberg).
• Current share price 57p (at time of writing).
• Q3 results (25 Oct) were positive, with the Bank reiterating FY guidance.
• No new PPI charges were welcomed by the market.
• Shares -20.6% from 2018 highs; +3% from 2018 lows; +16.2% year-to date

Click to enlarge

Trading Lloyds Banking – An Example

Let’s say you think that Lloyds Banking shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Lloyds Banking using a CFD, at the current price of 57p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Lloyds Banking share price rises to 63.9p August high (+12.1%). Your profit would be £1210 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. Lloyds Banking 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.