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

• Morgan Stanley upgrades to Overweight, with a target of 78p.
• Consensus summary: 17 Buys, 8 Holds, 3 Sell; Average target: 70.9p (Source: Bloomberg).
• Current share price 57.7p (at time of writing).
• Shares -21.7% from 2018 highs; +14.9% from 2018 lows; +11.2% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Lloyds – An Example

Let’s say you think that Lloyds shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 57.7p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Lloyds share price rises to 72p (+24.8%). Your profit would be £2480 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. Lloyds 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.