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

• The chart shows the Prudential share price since November.
• Evercore ISI upgrades Prudential to Outperform, setting the target price at 1750p.
• Consensus summary: 15 Buys, 5 Holds, 1 Sell; Average target: 1973.24p (Source: Bloomberg).
• Current share price 1439.5p (at time of writing).
• Shares -0.6% from 2019 highs; +6.8% from 2019 lows; +2.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Prudential – An Example

Let’s say you think that Prudential shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1439.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Prudential share price rises to 1649.75p November high (+14.6%). Your profit would be £1460 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Prudential shares break lower, they fall 8% and hit your stop-loss. Your loss would be £800.

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