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

• Exane BNP Paribas upgrades to Outperform with a target price of 480p.
• Consensus: 3 Buys, 10 Holds, 3 Sell; Avg target: 416p (Source: Bloomberg).
• Current share price 426p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 447p 2018 highs?
• Shares -2.9% from 2019 highs; +19.7% from 2019 lows; +16.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ashmore – An Example

Let’s say you think that Ashmore shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ashmore using a CFD, at the current price of 426p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ashmore share price rises to 447p 2018 highs (+4.9%). Your profit would be £490 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Ashmore shares fall 2% and hit your stop-loss. Your loss would be £200.

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