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

• The chart shows the Berkeley Group share price since the beginning of October.
• Shore Capital upgrades Berkeley Group to Hold, setting a 3350p target price.
• Consensus summary: 3 Buys, 10 Holds, 6 Sell; Average target: 3788.27p (Source: Bloomberg).
• Current share price 3419p (at time of writing).
• Shares -23.4% from 2018 highs; +4.8% from 2018 lows; -18.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Berkeley Group – An Example

Let’s say you think that Berkeley Group shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Berkeley Group using a CFD, at the current price of 3419p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Berkeley Group share price rises to 3731p recent highs(+9.1%). Your profit would be £910 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Berkeley Group shares fall 4% and hit your stop-loss. Your loss would be £400.

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