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

• Barclays upgrades to Overweight with a 175p target.
• Consensus: 4 Buys, 1 Holds, 0 Sell; Avg target: 179p (Source: Bloomberg).
• Current share price 150p (at time of writing).
• Will the shares turn back, or will the upgrade push them to 181p?
• Shares -15.4% from 2019 highs; +5.6% from 2019 lows; -7.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Chemring – An Example

Let’s say you think that Chemring  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Chemring  using a CFD, at the current price of 150p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Chemring share price rises to 181p (+20.6%). Your profit would be £2060 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Chemring shares fall 7% and hit your stop-loss. Your loss would be £700.

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