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

• Redburn upgrades to Buy
• Consensus summary: 12 Buys, 7 Holds, 2 Sell; Average target: 247p (Source: Bloomberg).
• Current share price 2292p (at time of writing).
• Shares -5.8% from 2019 highs; +14.0% from 2019 lows; +12.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading AB Foods – An Example

Let’s say you think that AB Foods shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of AB Foods using a CFD, at the current price of 2292p. To do this, you need £2,000.

For the purpose of this example, let’s assume the AB Foods share price rises to 2457p (+7.2%). Your profit would be £720 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. AB Foods 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.