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

• The chart shows the Hikma share price since May 2017.
• Barclays upgrades Hikma to Equalweight (from underweight); ups target to 1800p (from 1400p).
• Consensus summary: 6 Buys, 5 Holds, 3 Sell; Average target: 1721p (Source: Bloomberg).
• Current share price 1931p (at time of writing).
• Shares -7.5% from 2018 highs; +130.9% from 2018 lows; +70.6% year-to date
• 15 Oct: Jefferies says Hikma performs well, but must maintain momentum
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Hikma – An Example

Let’s say you think that Hikma shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Hikma using a CFD, at the current price of 1931p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hikma share price rises to 2703p highs (+40%). Your profit would be £4000 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. Hikma shares break lower, 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.