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

• HSBC upgraded to Buy with a target price of 2960p.
• Consensus: 10 Buys, 6 Holds, 2 Sell; Avg target: 2612p (Source: Bloomberg).
• Current share price 2194p (at time of writing).
• Will the shares turn back, or will they raly back to recent 2476p highs?
• Shares -11.9% from 2019 highs; +15.9% from 2019 lows; +13.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Persimmon – An Example

Let’s say you think that Persimmon shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Persimmon using a CFD, at the current price of 2194p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Persimmon share price rises to recent highs at 2476p (+12.8%). Your profit would be £1280 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. Persimmon 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.