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

• The chart shows the Greencore share price since July 2017.
• Numis upgrades Greencore to Buy, target price at 217p.
• Consensus summary: 7 Buys, 3 Holds, 0 Sell; Average target: 215p.
• Current share price 179p (at time of writing).
• Shares -29% from 2018 highs; +38.3% from 2018 lows; -22% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Greencore – An Example

Let’s say you think that Greencore shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Greencore using a CFD, at the current price of 179p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Greencore share price rises to 225p October high (+25.7%). Your profit would be £2570 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. Greencore shares continue their downtrend, 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.