Does this Upgrade present an opportunity for you?

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

• The chart shows the Carnival share price since May.
• Morningstar upgrades Carnival to Buy; reiterates 5300p target.
• Consensus summary: 11 Buys, 2 Holds, 0 Sell; Average target: 129.5p (Source: Bloomberg).
• Current share price 4381p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards September highs of 4973p?
• Shares -15.2% from 2018 highs; +2.5% from 2018 lows; -10.4% year-to date

Click to enlarge

Trading Carnival – An Example

Let’s say you think that Carnival shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Carnival using a CFD, at the current price of 4381p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Carnival share price rises to 4973p (+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. Carnival 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.