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

• The chart shows the AstraZeneca share price over the past 2 months.
• AlphaValue upgrades AstraZeneca to Add, setting a 6707p target price.
• Consensus summary: 20 Buys, 10 Holds, 4 Sell; Average target: 6473.74p (Source: Bloomberg).
• Current share price 6118p (at time of writing).
• Shares -4.35% from 2018 highs; +35.4% from 2018 lows; +19.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading AstraZeneca – An Example

Let’s say you think that AstraZeneca shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of AstraZeneca using a CFD, at the current price of 6118p. To do this, you need £2,000.

For the purpose of this example, let’s assume the AstraZeneca share price rises to 6433p November highs(+5.1%). Your profit would be £510 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. AstraZeneca shares continue their downtrend, they fall 2% and hit your stop-loss. Your loss would be £200.

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