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

• The chart shows the Schroders share price since November.
• Exane BNP Paribas upgrades Schroders to Outperform, setting the target price at 2900p.
• Consensus summary: 7 Buys, 3 Holds, 0 Sell; Average target: 3215.5p (Source: Bloomberg).
• Current share price 2531p (at time of writing).
• Shares currently trade near 2019 highs; +5.9% from 2019 lows; +3.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Schroders – An Example

Let’s say you think that Schroders shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Schroders using a CFD, at the current price of 2531p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Schroders share price rises to November high of 2721p (+7.5%). Your profit would be £750 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Schroders shares continue their downtrend, they fall 4% and hit your stop-loss. Your loss would be £400.

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