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

• Berenberg starts coverage at Buy with a target price of 10,510p.
• Consensus: 3 Buys, 10 Holds, 2 Sell; Avg target: 7501p (Source: Bloomberg).
• Current share price 8,702p (at time of writing).
• Will the shares turn back, or will they rally on to fresh highs of 10,000p?
• Shares -1.5% from 2019 highs; +46.5% from 2019 lows; +39.3% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Spirax Sarco – An Example

Let’s say you think that Spirax Sarco shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Spirax Sarco using a CFD, at the current price of 8,702p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Spirax Sarco share price rises to 10,000p (+14.9%). Your profit would be £1490 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. Spirax Sarco shares fall 5% and hit your stop-loss. Your loss would be £500.

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