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

• Societe Generale upgrades to Buy, with a target price of 840p.
• Consensus: 11 Buys, 7 Holds, 10 Sell; Avg target: 700p (Source: Bloomberg).
• Current share price 724p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 857p Feb highs?
• Shares -0.5% from 2019 highs; +26% from 2019 lows; +18.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Standard Chartered – An Example

Let’s say you think that Standard Chartered shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Standard Chartered using a CFD, at the current price of 724p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Standard Chartered share price rises to 857p Feb highs (+18%). Your profit would be £1800 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. Standard Chartered 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.