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

• The chart shows the Dixons share price since August.
• HSBC upgrades Dixons to Buy, reiterating its 195p target price.
• Consensus summary: 6 Buys, 6 Holds, 1 Sell; Average target: 169p (Source: Bloomberg).
• Current share price 126.7p (at time of writing).
• Shares -47.8% from 2018 highs; +8.3% from 2018 lows; +5.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Dixons – An Example

Let’s say you think that Dixons shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Dixons using a CFD, at the current price of 126.7p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Dixons share price rises to 180p Nov highs (+41%). Your profit would be £4100 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Dixons shares break lower, they fall 5% and hit your stop-loss. Your loss would be £500.

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