Is it irrelevant, or will the Upgrade make GVC’s share price attractive?

• The chart shows GVC’s share price movements since August.
• Shares +3.76% from 2019 lows; -1.4% from 2019 highs; +7.86% year-to date
• Numis upgraded GVC to Buy, setting target price at 1098p.
• Consensus summary: 15 Buys, 2 Holds, 0 Sell; Average target: 1170p (Source: Bloomberg).
• Current share price 727p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 827p November highs?
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading GVC– An Example

Let’s say you think that GVC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of GVC using a CFD, at the current price of 727p. To do this, you need £2,000.

For the purpose of this example, let’s assume the GVC share price rises to 827p November highs (+13.7%). Your profit would be £1370 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. GVC shares fall 7% and hit your stop-loss. Your loss would be £700.

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