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

• RBS upgrades to Outperform, with a price target of 250p.
• Consensus summary: 9 Buys, 11 Holds, 1 Sell; Average target: 233p (Source: Bloomberg).
• Current share price 195p (at time of writing).
• Shares currently trade -11.1% from 2019 highs; +13.7% from 2019 lows; +8% year-to date
• 20 Jun: RBC calls UK lender CYBG very cheap for a profitable retail bank
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading CYBG – An Example

Let’s say you think that CYBG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of CYBG using a CFD, at the current price of 195p. To do this, you need £2,000.

For the purpose of this example, let’s assume the CYBG share price rises to the consensus target of 233p (+19%). Your profit would be £1900 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. CYBG shares fall 5% and hit your stop-loss. Your loss would be £500

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