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

• The chart shows the Bovis share price since Sept 2016.
• Liberum upgrades Bovis to Buy, setting a 400p target price.
• Consensus summary: 5 Buys, 9 Holds, 2 Sell; Average target: 1153p (Source: Bloomberg).
• Current share price 872p (at time of writing).
• Shares -32.9% from 2018 highs; +6.3% from 2018 lows; -25.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Bovis Homes – An Example

Let’s say you think that Bovis shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Bovis using a CFD, at the current price of 872p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Bovis share price rises to 1000p again (+14.7%). Your profit would be £1470 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. Bovis shares continue their downtrend, 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.