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

• AlphaValue upgrades to Buy with a target price of 1913p.
• Consensus: 14 Buys, 7 Holds, 1 Sell; Avg target: 1958p (Source: Bloomberg).
• Current share price 1600p (at time of writing).
• Will the shares turn back, or will they rally back to prior highs of 1683p?
• Shares -10.6% from 2019 highs; +19.8% from 2019 lows; +14.1% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Prudential – An Example

Let’s say you think that Prudential shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Prudential using a CFD, at the current price of 1600p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Prudential share price rises to 1683p prior highs (+5%). Your profit would be £500 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. Prudential shares break lower, they fall 2% and hit your stop-loss. Your loss would be £200.

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