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

• Kepler Chevreux upgrades to Buy, with a target price of 6900p.
• Consensus: 15 Buys, 7 Holds, 4 Sell; Avg target: 6849p (Source: Bloomberg).
• Current share price 6057p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 6530p March highs?
• Shares -7.3% from 2019 highs; +9% from 2019 lows; +0.8% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Reckitt Benckiser – An Example

Let’s say you think that Reckitt Benckiser shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Reckitt Benckiser using a CFD, at the current price of 6057p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Reckitt Benckiser share price rises to 6530p March highs (+7.8%). Your profit would be £780 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. Reckitt Benckiser 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.