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

• Day by Day upgrade to Buy with a target of 474p.
• Consensus summary: 16 Buys, 6 Holds, 0 Sell; Average target: 514p (Source: Bloomberg).
• Current share price 422p (at time of writing).
• Shares -4.3% from 2019 highs; +16.3% from 2019 lows; +12.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Aviva – An Example

Let’s say you think that Aviva shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 422p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Aviva share price rises back to recent highs of 436p (+3.3%). Your profit would be £330 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. Aviva 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.