BHP
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make BHP share price attractive?
- Jefferies has upgraded BHP to a Buy, with a target price at 1800p
- Consensus: 5 Buys, 12 Holds, 4 Sells; Average target: 1650p (Source: AlphaTerminal)
- Current share price is 1636p (at time of writing)
- Will the shares turn back, or will the upgrade push the shares towards 1800p?
- Shares -10.8% from 2018 highs; +19.3% from 2018 lows; -0.9% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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Trading BHP – An Example
Let’s say you think that BHP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 1636p. To do this, you need £2,000.
For the purpose of this example, let’s assume the BHP share price rises to 1800p (+10.0%). Your profit would be £1000, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BHP shares fall 3% and hit your stop-loss. Your loss would be £300.
This is provided for information purposes only. It should not be taken as a recommendation.