Does this Upgrade present an opportunity for you?

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

• The chart shows the Cobham share price since January.
• Morningstar upgrades Cobham to Buy and reiterates its 130p target price.
• Consensus summary: 6 Buys, 7 Holds, 5 Sell; Average target: 129.5p (Source: Bloomberg).
• Current share price 110.78p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards Summer highs of 133p?
• Shares -18.5% from 2018 highs; +1.5% from 2018 lows; -12.3% year-to date

Click to enlarge

Trading Cobham – An Example

Let’s say you think that Cobham shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Cobham using a CFD, at the current price of 110.8p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Cobham share price rises to 133p (+20%). Your profit would be £2000 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. Cobham 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.