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

• Berenberg upgrades to Buy (from Hold) with a 285p target.
• Consensus: 7 Buys, 7 Holds, 3 Sell; Avg target: 243p (Source: Bloomberg).
• Current share price 242p (at time of writing).
• Will the shares turn back, or will the upgrade push them to 2018 highs of 270p?
• Shares trading at 2019 highs; +14.4% from 2019 lows; +13.5 % year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Morrisons  – An Example

Let’s say you think that Morrisons  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Morrisons  using a CFD, at the current price of 242p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Morrisons share price rises to 270p (+11.5%). Your profit would be £1150 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. Morrisons shares continue their downtrend, 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.