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

• Peel Hunt starts coverage at Buy, with a target price of 290p.
• Consensus: 8 Buys, 2 Holds, 0 Sell; Avg target: 272p (Source: Bloomberg).
• Current share price 276.4p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 3290p?
• Shares -2.5% from 2019 highs; +22.9% from 2019 lows; +19.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Grainger – An Example

Let’s say you think that Grainger shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Grainger using a CFD, at the current price of 272p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Grainger share price rises to 290p (+6.6%). Your profit would be £660 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. Grainger shares fall 2% and hit your stop-loss. Your loss would be £200p.

This is provided for information purposes only. It should not be taken as a recommendation.