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

• The chart shows the Burberry share price since December 2018.
• BryanGarnier upgrades Burberry to Neutral, setting the target price at 1780p.
• Consensus summary: 2 Buys, 17 Holds, 5 Sell; Average target: 1867.89p (Source: Bloomberg).
• Current share price 1803p (at time of writing).
• Shares -11.6% from 2019 highs; +11.3% from 2019 lows; +3.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Burberry – An Example

Let’s say you think that Burberry  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Burberry using a CFD, at the current price of 1803p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Burberry share price rises to 2000p (+10.9%). Your profit would be £1357 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. Burberry 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.