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

• The chart shows the Aston Martin share price since the IPO.
• Coverage initiation from 2 brokerages today.
• JP Morgan initiates coverage at Overweight, setting the target price at 2000p.
• Deutsche Bank initiates coverage at Buy, setting the target price at 2000p.
• Consensus summary: 6 Buys, 3 Holds, 1 Sell; Average target: 1853.5p (Source: Bloomberg).
• Current share price 1495p (at time of writing).
• Shares -18% from 2018 highs; +10.6% from 2018 lows.
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Aston Martin – An Example

Let’s say you think that Aston Martin shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Aston Martin using a CFD, at the current price of 1495p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Aston Martin share price rises to October high of 1914p (+28%). Your profit would be £2800 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Aston Martin shares continue their downtrend, they fall 8% and hit your stop-loss. Your loss would be £800.

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