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

• The chart shows the Petrofac share price since August 2017.
• Jefferies upgraded Petrofac to Buy, setting a target of 590p.
• Consensus summary: 8 Buys, 6 Holds, 2 Sell; Average target: 677.9p (Source: Bloomberg).
• Current share price 526.5p (at time of writing).
• Shares currently trade 2018 highs; +9.7% from 2018 lows; +10.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Petrofac – An Example

Let’s say you think that Petrofac shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 526.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Petrofac share price rises to 604p November highs (+14.8%). Your profit would be £1480 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. Petrofac shares 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.