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

• Societe Generale upgrades to Buy with a target price of 2000p.
• Consensus: 10 Buys, 12 Holds, 2 Sell; Avg target: 1786p (Source: Bloomberg).
• Current share price 1773p (at time of writing).
• Will the shares turn back, or will they rally to Societe Generale’s target of 2000p highs?
• Shares -3.1% from 2019 highs; +12.5% from 2019 lows; +7.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Compass Group – An Example

Let’s say you think that Compass Group shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Compass Group using a CFD, at the current price of 1773p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Compass Group share price rises to April 2000p highs (+12.8%). Your profit would be £1280 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. Compass Group 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.