Is it irrelevant, or will the Upgrade make the British Airways owner IAG share price more attractive?

• Citigroup upgrades to Neutral, and hikes the target price to 560p (from 508p).
• Consensus: 19 Buys, 8 Holds, 5 Sell; Avg target: 697p (Source: Bloomberg).
• Current share price 544p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 1578p March highs?
• Shares -18.5% from 2019 highs; +1.5% from 2019 lows; -11.9% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading British Airways owner IAG – An Example

Let’s say you think that IAG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of IAG using a CFD, at the current price of 544p. To do this, you need £2,000.

For the purpose of this example, let’s assume the IAG share price rises to 578p March highs (+6.25%). Your profit would be £625 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. IAG shares 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.