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

• Goodbody upgrades to Buy, with a 310p target
• Consensus summary: 4 Buys, 9 Holds, 3 Sells; Average target: 287p (Source: Bloomberg).
• Current share price 286p (at time of writing).
• Shares -3.0% from 2018 highs; +23.4% from 2018 lows; +11.0% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Mitchells Butler – An Example

Let’s say you think that Mitchells Butler 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 286p. To do this, you need £2,000.

For the purpose of this example, let’s assume the share price rises to 315p (+10.1%). Your profit would be £1010 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Mitchells Butler shares break lower, they fall 3% and hit your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.