Is it irrelevant, or will the Upgrade make the BA-owner IAG share price more attractive?

• RBC upgrades to Outperform, with a target price of 650p.
• Consensus: 20 Buys, 7 Holds, 5 Sell; Avg target: 697p (Source: Bloomberg).
• Current share price 531p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 666p recent highs?
• Shares -20.4% from 2019 highs; +0.6% from 2019 lows; -13.9% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading British Airways owner IAG – An Example

Let’s say you think that IAG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 531p. To do this, you need £2,000.

For the purpose of this example, let’s assume the IAG share price rises to 666p recent highs (+25%). Your profit would be £2500 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. IAG 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.