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

• Investec starts coverage at Buy, with a target of 250p.
• Consensus summary: 9 Buys, 6 Holds, 5 Sell; Average target: 315p (Source: Bloomberg).
• Current share price 218p (at time of writing).
• Shares -17.8% from 2018 highs; +17.2% from 2018 lows; +14.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Tesco – An Example

Let’s say you think that Tesco shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 218p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Tesco share price rises to 245p highs (+12.4%). Your profit would be £1240 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Tesco shares fall 4% and hit your stop-loss. Your loss would be £400.

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