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

• The chart shows the BT share price since last July.
• AlphaValue has upgraded its rating on BT to Add and improved the target price to 271p (from 269p)
• Consensus summary: 12 Buys, 12 Holds, 2 Sell; Average target: 276.25p (Source: Bloomberg).
• Current share price 246p (at time of writing).
• 1 Nov: H1 results better than expected this morning, with management raising profits guidance
• Shares trading in a rising channel since late May.
• Shares -9.9% from 2018 highs; +24.7% from 2018 lows; -9.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading BT – An Example

Let’s say you think that BT shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 246p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BT share price rises to January high of 278p (+13%). Your profit would be £1300 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. BT 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.