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

• Morningstar upgrades to Buy, with a target of 3480p.
• Consensus summary: 18 Buys, 4 Holds, 6 Sell; Average target: 3821p (Source: Bloomberg).
• Current share price 2635p (at time of writing).
• Shares -35.6% from 2019 highs; +20.2% from 2019 lows; +15.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 2635p. To do this, you need £2,000.

For the purpose of this example, let’s assume the ASOS share price rises to 2900p (+10). Your profit would be £1000 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. ASOS 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.