Is it irrelevant, or will the Upgrade make the Domino’s UK & IRL share price more attractive?

• Peel Hunt upgrades to Buy with a 300p target
• Consensus: 5 Buys, 3 Holds, 5 Sell; Avg target: 256p (Source: Bloomberg).
• Current share price 240p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent highs of 261p?
• Shares -16.1% from 2019 highs; +8.4% from 2019 lows; +2.9% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Domino’s – An Example

Let’s say you think that Domino’s shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Domino’s using a CFD, at the current price of 240p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Domino’s share price rises to 261p (+8.7%). Your profit would be £870 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. Domino’s 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.