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

• The chart shows the Aviva share price since 2012.
• RBC has upgraded the shares to Top Pick and reiterated its 540p target price .
• Consensus summary: 16 Buys, 5 Holds, 0 Sell; Average target: 557p (Source: Bloomberg).
• Current share price 3755p (at time of writing).
• Shares -32.8% from 2018 highs; +0.4% off 2018 lows; -25.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Aviva – An Example

Let’s say you think that Aviva shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Aviva using a CFD, at the current price of 375p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Aviva share price rises back to to 550p (+46.6%). Your profit would be £4666 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. Aviva 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.