Will Aggreko continue falling, or will it rise again back to 773p recent highs?

• Aggreko fallen over 7.8% from Jan highs.
• Downgraded by Peel Hunt to Reduce, target lowered to 700p.
• Now trades 715p (at time of writing).
• Shares -7.5% from 2019 highs; +0.5% from 2019 lows; -2.5% year-to-date.
• Can the stock recover to recent highs?
• Source: Dow Jones, Bloomberg, FT, Company News, AlphaTerminal

Click to enlarge

Trading Aggreko – An Example

Let’s say you feel that the stock is a bargain and you think could bounce back towards recent high of 773p. You decide to buy exposure to £10,000 worth of Aggreko using a CFD, at the current price of 715p. To do this, you need £2,000.

Let’s assume Aggreko recovers back to 773p (+8.1%). Your profit would be £810, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Aggreko falls 4% and hits your stop-loss. Your loss would be £400.

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