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

• The chart shows the NMC Health share price since the beginning of September.
• Société Générale initiates coverage of NMC Health at Buy, setting the target price at 4300p.
• Consensus summary: 10 Buys, 2 Holds, 0 Sell; Average target: 4307p (Source: Bloomberg).
• Current share price 3630p (at time of writing).
• 22 Oct: Healthcare group upgraded its FY guidance, raising its revenue outlook.
• Shares -18.6% from 2018 highs; +25% from 2018 lows; +25.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading NMC Health – An Example

Let’s say you think that NMC Health shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of NMC Health using a CFD, at the current price of 3630p. To do this, you need £2,000.

For the purpose of this example, let’s assume the NMC Health share price rises to 4000p (+10.1%). Your profit would be £1010 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. NMC Health shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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