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

• Shore Capital upgrades William Hill to Buy
• Jefferies starts coverage of William Hill at Buy
• Consensus summary: 13 Buys, 4 Holds, 1 Sell; Average target: 240p (Source: Bloomberg).
• Current share price 182p (at time of writing).
• Shares -47.8% from 2018 highs; +21.5% from 2018 lows; +8.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading William Hill – An Example

Let’s say you think that William Hill shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth using a CFD, at the current price of 182p. To do this, you need £2,000.

For the purpose of this example, let’s assume the share price rises to 270p 2018 highs (+48%). Your profit would be £4800 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. William Hill shares break lower, they 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.