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

• The chart shows the Hikma share price since mid-August.
• Jefferies upgrades Hikma to Buy (from Hold); ups target to 2000p (from 1643p).
• Consensus summary: 5 Buys, 6 Holds, 2 Sell; Average target: 1975.5p (Source: Bloomberg).
• Current share price 1736p (at time of writing).
• Shares -18% from 2018 highs; +110.3% from 2018 lows; +52.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

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 1736p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hikma share price rises to 2087p November highs (+20.2%). Your profit would be £2020 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. Hikma shares break lower, they fall 9% and hit your stop-loss. Your loss would be £900.

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