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

• The chart shows the William Hill share price since early September.
• Morgan Stanley upgrades William Hill to Overweight, adjustng the target price to 290p (from 340p).
• Consensus summary: 11 Buys, 6 Holds, 1 Sell; Average target: 311p (Source: Bloomberg).
• Current share price 221p (at time of writing).
• On 31 Oct, William Hill announced a £242m takeover bid to buy the Swedish online gaming group Mr Green & Co.
• Expansion to Sweden will help William Hill reduce its dependence on the UK market.
• Shares -39.7% from 2018 highs; +8.36% from 2018 lows; -31.24% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading William Hill – An Example

Let’s say you think that William Hill shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of William Hill using a CFD, at the current price of 221p. To do this, you need £2,000.

For the purpose of this example, let’s assume the William Hill share price rises to 266p September high (+20.4%). Your profit would be £2040 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. William Hill shares continue their downtrend, they fall 10% and hit your stop-loss. Your loss would be £1000.

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