Does this Upgrade present an opportunity for you?

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

• The chart shows AVEVA’s share price movements over the past 2 months.
• Testing record highs around 3,062p (seen in January this year).
• Numis Securities has upgraded AVEVA to a Buy rating overnight, with a target price at 3,400p.
• Consensus summary: 4 Buys, 6 Holds, 0 Sells; Average target: 2,927p (Source: Bloomberg).
• Current share price is 2,961p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 3,062p prior highs?

Click to enlarge

Trading AVEVA – An Example

Let’s say you think that AVEVA shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of AVEVA using a CFD, at the current price of 2,961p. To do this, you need £2,000.

For the purpose of this example, let’s assume the AVEVA share price rises to 3,062p. Your profit would be £340, 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. AVEVA shares continue falling as a result of the downgrade, they 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.