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

• Exane BNP starts coverage at Buy, with a 100p target.
• Consensus: 6 Buys, 1 Holds, 0 Sell; Avg target: 115p (Source: AlphaTerminal).
• Current share price 78.1p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards Nov highs of 98.5p?
• Shares -50.9% from 2018 highs; +35.2% from 2018 lows; +20.2% year-to date.
• Markets reacted positively to Apple and AMD results on 29 Jan
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading IQE – An Example

Let’s say you think that IQE shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of IQE using a CFD, at the current price of 78.1p. To do this, you need £2,000.

For the purpose of this example, let’s assume the IQE share price rises to 98.5p (+26.1%). Your profit would be £2610 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. IQE  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.