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

• Day by Day starts coverage at Buy, with a target price of 5470p.
• Consensus: 6 Buys, 17 Holds, 0 Sell; Avg target: 4760p (Source: Bloomberg).
• Current share price 4561p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 5000p?
• Shares -11.6% from 2019 highs; +2.4% from 2019 lows; -0.4% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Whitbread – An Example

Let’s say you think that Whitbread shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Whitbread using a CFD, at the current price of 4561p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Whitbread share price rises to 5000p (+9.6%). Your profit would be £960 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. Whitbread 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.