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

• The chart shows the ASOS share price since August 2015.
• Credit Suisse upgraded ASOS to Outperform, setting a target of 3500p.
• Consensus summary: 15 Buys, 5 Holds, 4 Sell; Average target: 4694p (Source: Bloomberg).
• Current share price 2691p (at time of writing).
• Shares -66.4% from 2018 highs; +10% from 2018 lows; -59.9% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading ASOS – An Example

Let’s say you think that ASOS shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of ASOS using a CFD, at the current price of 2691p. To do this, you need £2,000.

For the purpose of this example, let’s assume the ASOS share price rises to 3000p (+11.5%). Your profit would be £1150 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. ASOS 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.