BP
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the BP share price more attractive?
- DZ Bank upgrades to Buy (from Hold), with a 610p target
- Consensus summary: 21 Buys, 7 Holds, 1 Sells; Average target: 597p (Source: Bloomberg).
- Current share price 550.5p (at time of writing).
- Shares now trade 2019 highs; +12.5% from 2018 lows; +11% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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 using a CFD, at the current price of 550.5p. To do this, you need £2,000.
For the purpose of this example, let’s assume the share price rises to 603p October highs (+9.5%). Your profit would be £950 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 break lower, 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.