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

• Barclays upgrades to Overweight, with a target of 160p.
• Consensus summary: 8 Buys, 7 Holds, 1 Sell; Average target: 162p (Source: Bloomberg).
• Current share price 118p (at time of writing).
• Shares -7.8% from 2019 highs; +8.1% from 2019 lows; +5.9% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Capita – An Example

Let’s say you think that Capita shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Capita using a CFD, at the current price of 118p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Capita share price rises to 134p highs (+13.5%). Your profit would be £1350 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. Capita shares 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.