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

• The chart shows the British Land share price since late August.
• HSBC upgrades British Land to Buy, setting the target price at 667p.
• Consensus summary: 7 Buys, 8 Holds, 2 Sell; Average target: 657p (Source: Bloomberg).
• Current share price 588p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 644p recent highs?
• Shares -17.9% from 2018 highs; +4.1% from 2018 lows; -15% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading British Land – An Example

Let’s say you think that British Land shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of British Land using a CFD, at the current price of 588p. To do this, you need £2,000.

For the purpose of this example, let’s assume the British Land share price rises to 644p (+9.5%). Your profit would be £950 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. British Land 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.