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

• Credit Suisse upgrades to Outperform, with a target price of 5060p.
• Consensus: 7 Buys, 9 Holds, 4 Sell; Avg target: 4600p (Source: Bloomberg).
• Current share price 4640p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 5000p[?
• Shares -1.3% from 2019 highs; +18.7% from 2019 lows; +12.9% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Unilever – An Example

Let’s say you think that Unilever shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Unilever using a CFD, at the current price of 4640p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Unilever share price rises to 5000p all time highs (+7.7%). Your profit would be £770 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. Unilever 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.