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

• The chart shows the Barratt Developments share price since late April.
• Liberum upgrades Barratt Developments to Buy, setting a 525p target price.
• Consensus summary: 14 Buys, 4 Holds, 1 Sell; Average target: 635.91p (Source: Bloomberg).
• Current share price 461p (at time of writing).
• Shares -28.5% from 2018 highs; +6.8% from 2018 lows; -28.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Barratt Developments – An Example

Let’s say you think that Barratt Developments shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Barratt Developments using a CFD, at the current price of 461p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Barratt Developments share price rises to 555p recent highs(+20.3%). Your profit would be £2030 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. Barratt Developments 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.