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

• The chart shows the Crest Nicholson share price since late August.
• Liberum upgrades Crest Nicholson to Buy, setting a 400p target price.
• Consensus summary: 6 Buys, 6 Holds, 0 Sell; Average target: 417.4p (Source: Bloomberg).
• Current share price 336p (at time of writing).
• Shares -40.35% from 2018 highs; +22.55% from 2018 lows; -38.4% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Crest Nicholson – An Example

Let’s say you think that Crest Nicholson shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Crest Nicholson using a CFD, at the current price of 336p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Crest Nicholson share price rises to 398p recent highs(+18.45%). Your profit would be £1845 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. Crest Nicholson shares continue their downtrend, they fall 6% and hit your stop-loss. Your loss would be £600.

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