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

• The chart shows the BT share price since the beginning of the year.
• Goldman Sachs has upgraded BT to Buy and improved the target price to 320p (from 240p)
• Consensus summary: 14 Buys, 11 Holds, 1 Sell; Average target: 284.63p (Source: Bloomberg).
• Current share price 260p (at time of writing).
• Shares -7.8% from 2018 highs; +27.5% from 2018 lows; -4.2% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 260p. To do this, you need £2,000.

For the purpose of this example, let’s assume the BT share price rises to January high of 278p (+7%). Your profit would be £700 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. BT 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.