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

• Canaccord upgrades to Buy, with a target price of 1440p.
• Consensus: 4 Buys, 14 Holds, 4 Sell; Avg target: 1428p (Source: Bloomberg).
• Current share price 1293p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 1480p March highs?
• Shares -13.2% from 2019 highs; +23.9% from 2019 lows; +20.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Travis Perkins – An Example

Let’s say you think that Travis Perkins shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Travis Perkins using a CFD, at the current price of 1293p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Travis Perkins share price rises to 1440p March highs (+11%). Your profit would be £1100 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. Travis Perkins 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.