Is it irrelevant, or will the Upgrade make Centrica’s share price attractive?

• AlphaValue upgrades to Buy with a target price of 126p.
• Consensus: 2 Buys, 11 Holds, 3 Sell; Avg target: 122p (Source: Bloomberg).
• Current share price 93.35p (at time of writing).
• Will the shares turn back, or will they rally back to recent 140p highs?
• Shares -33.6% from 2019 highs; +0.2% from 2019 lows; -30.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Centrica – An Example

Let’s say you think that Centrica shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Centrica using a CFD, at the current price of 93.5p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Centrica share price rises to 140p (+49%). Your profit would be £4900, 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. Centrica 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.