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

• MainFirst upgrades to Outperform with the target of 2150p.
• Consensus summary: 3 Buys, 18 Holds, 3 Sell; Average target: 1880p (Source: Bloomberg).
• Current share price 1954p (at time of writing).
• Shares -4.3% from 2019 highs; +20.6% from 2019 lows; +12.4% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 1954p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Burberry share price rises to 2040p (+4.4%). Your profit would be £440 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Burberry shares continue their downtrend, they fall 2% and hit your stop-loss. Your loss would be £200.

This is provided for information purposes only. It should not be taken as a recommendation.