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

• RBC starts coverage at Outperform, with a 200p target.
• Consensus: 11 Buys, 6 Holds, 1 Sell; Avg target: 192p (Source: Bloomberg).
• Current share price 152p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards Oct highs of 223p?
• Shares -38.0% from 2018 highs; +19.4% from 2018 lows; +6.9% year-to date.
• 24 Jan: Expects to meet market forecasts for profits
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Restaurant Group – An Example

Let’s say you think that Restaurant Group shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Restaurant Group using a CFD, at the current price of 152p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Restaurant Group share price rises to consensus 192p (+26.3%). Your profit would be £2630 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. Restaurant Group 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.