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

• The chart shows the BT share price since last July.
• JPMorgan has upgraded its rating on BT to Overweight
• Consensus summary: 11 Buys, 5 Holds, 0 Sell; Average target: 1366p (Source: Bloomberg).
• Current share price 261p (at time of writing).
• 1 Nov: H1 results better than expected this morning, with management raising profits guidance
• Shares broken out from channel
• Shares -13.6% from 2018 highs; +19.5% from 2018 lows; -3.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading BT – An Example

Let’s say you think that BT shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of BT using a CFD, at the current price of 261p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BT share price rises to 317p (+21.5%). Your profit would be £2150 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. BT 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.