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

• Barclays initiated coverage at Overweight, with a target of 950p.
• Consensus: 10 Buys, 8 Holds, 0 Sell; Avg target: 917p (Source: AlphaTerminal).
• Current share price 819p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards Nov highs of 867p?
• Shares -0.4% from 2018 highs; +8.25% from 2018 lows; +7.2% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading National Grid – An Example

Let’s say you think that National Grid shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of National Grid using a CFD, at the current price of 819p. To do this, you need £2,000.

For the purpose of this example, let’s assume the National Grid share price rises to 867p (+5.8%). Your profit would be £580 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. National Grid shares 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.