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

• The chart shows the BP share price since September.
• Raymond James upgrades BP  to Outperform, setting the target price at 690p.
• Consensus summary: 20 Buys, 8 Holds, 1 Sell; Average target: 648.4p (Source: Bloomberg).
• Current share price 523p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 553p recent highs?
• Shares -13.3% from 2018 highs; +15.5% from 2018 lows; flat year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BP – An Example

Let’s say you think that BP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BP using a CFD, at the current price of 523p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BP share price rises to 553p (+5.7%). Your profit would be £570 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. BP shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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