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

• The chart shows the InterContinental Hotels share price since late October.
• Berenberg upgrades InterContinental Hotels to Buy, target price at 4850p.
• Consensus summary: 4 Buys, 9 Holds, 7 Sell; Average target: 4683.7p (Source: Bloomberg).
• Current share price 4336.5p (at time of writing).
• Shares -4.8% from 2019 highs; +2.3% from 2019 lows; -2.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading InterContinental Hotels – An Example

Let’s say you think that InterContinental Hotels shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of InterContinental Hotels using a CFD, at the current price of 4336.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume the InterContinental Hotels share price rises to 4581p recent high (+5.6%). Your profit would be £560 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. InterContinental Hotels shares break lower, they fall 2% and hit your stop-loss. Your loss would be £200.

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