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

• Liberum has upgraded BHP to Buy, with a target of 2000p
• Consensus: 7 Buys, 17 Holds, 6 Sells; Average target: 1877p (Source: AlphaTerminal)
• Current share price is 1779p (at time of writing)
• Will the shares turn back, or will the upgrade push the shares towards 1955p highs?
• Shares -8.9% from 2019 highs; +14.5% from 2019 lows; +7.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading BHP – An Example

Let’s say you think that BHP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BHP using a CFD, at the current price of 1779p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BHP share price rises to 1955p highs (+9.8%). Your profit would be £980, 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. BHP 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.