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

• Morgan Stanley upgrades to Overweight, with a 1100p target
• Consensus: 11 Buys, 5 Holds, 5 Sell; Avg target: 1030p (Source: Bloomberg).
• Current share price 910p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards Feb highs of 1006p?
• Shares -9.4% from 2019 highs; +19.9% from 2019 lows; +9.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Rolls Royce – An Example

Let’s say you think that Rolls Royce shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 910p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Rolls Royce share price rises to 1006p (+10.4%). Your profit would be £1050 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Rolls Royce shares fall 3% and hit your stop-loss. Your loss would be £300.

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