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

• The chart shows the Petrofac share price since Nov 2017.
• HSBC initiated coverage at Buy, with a price target of 665p.
• Consensus summary: 9 Buys, 6 Holds, 1 Sell; Average target: 678.9p (Source: Bloomberg).
• Current share price 552p (at time of writing).
• Shares currently trade -1% from 2019 highs; +19.2% from 2019 lows; +15.8% year-to date
• 7 Jan: Jefferies says Petrofac performance in 2018 hard to fault
• 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 552p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Petrofac share price rises to 670p Aug/Oct highs (+21.3%). Your profit would be £2130 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. Petrofac shares 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.