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

• Macquarie upgrades to Outperform, with a target price of 4800p.
• Consensus: 10 Buys, 2 Holds, 0 Sell; Avg target: 4925p (Source: Bloomberg).
• Current share price 4126p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent 4430p February highs?
• Shares -7.2% from 2019 highs; +12.3% from 2019 lows; +9.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Carnival– An Example

Let’s say you think that Carnival shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 4126p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Carnival share price rises to 4430p February highs (+7.3%). Your profit would be £730 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. Carnival 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.