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

• The chart shows the Admiral share price since February.
• RBS Capital Markets upgrades it to Sector Perform, with a target at 2050p.
• Consensus summary: 3 Buys, 6 Holds, 11 Sell; Average target: 1947.99p (Source: Bloomberg).
• Current share price 1998p (at time of writing).
• Will the shares turn back, or will the upgrade push them back to 2132p?
• Shares -6.7% from 2018 highs; +11.2% from 2018 lows; flat year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Admiral – An Example

Let’s say you think that Admiral shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Admiral  using a CFD, at the current price of 1998p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Admiral share price rises to November high of 2132p (+6.7%). Your profit would be £670 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. Admiral shares continue their downtrend, they 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.