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

• The chart shows the Aston Martin share price since November 2018.
• Bernstein upgrades Aston Martin to Outperform, setting the target price at 1200p.
• Consensus summary: 6 Buys, 4 Holds, 1 Sell; Average target: 1346.1p (Source: Bloomberg).
• Current share price 909p (at time of writing).
• Shares -33.8% from 2019 highs; +15% from 2019 lows; -25.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Aston Martin – An Example

Let’s say you think that Aston Martin shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Aston Martin using a CFD, at the current price of 909p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Aston Martin share price rises to the target of 1200p (+32%). Your profit would be £3200 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Aston Martin shares continue their downtrend, they fall 8% and hit your stop-loss. Your loss would be £800.

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