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

• Berenberg upgrades to Buy, with a target of 650p.
• Consensus: 6 Buys, 5 Holds, 0 Sell; Avg target: 723p (Source: AlphaTerminal).
• Current share price 554p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards Nov highs of 647p?
• Shares -31.1% from 2018 highs; +12.2% from 2018 lows; +9.3% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Electrocomponents – An Example

Let’s say you think that Electrocomponents shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Electrocomponents using a CFD, at the current price of 554p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Electrocomponents share price rises to 647p (+16.8%). Your profit would be £1680 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. Electrocomponents 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.