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

• Barclays upgrades to Buy, with a target of 130p.
• Consensus summary: 4 Buys, 8 Holds, 2 Sell; Average target: 151p (Source: Bloomberg).
• Current share price 121p (at time of writing).
• Shares -20.25% from 2019 highs; +4.7% from 2019 lows; -12.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Convatec – An Example

Let’s say you think that Convatec  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Convatec  using a CFD, at the current price of 121p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Convatec share price rises to 148p highs (+22.3%). Your profit would be £2230 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Convatec shares fall 8% and hit your stop-loss. Your loss would be £800.

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