Is it irrelevant, or will the Upgrade make Coca Cola HBC share price attractive?

• The chart shows Coca Cola HBC share price movements since August 2017.
• UBS has upgraded to a Buy, with a target price at 2650p
• Consensus summary: 9 Buys, 5 Holds, 1 Sell; Average target: 2811p (Source: Bloomberg)
• Current share price 2383p (at time of writing)
• Will the shares turn back, or will the upgrade push the shares back towards 2800p July highs?
• Shares -19.5% from 2018 highs; +4.3% from 2018 lows; -1.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Coca Cola HBC – An Example

Let’s say you think that Coca Cola HBC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Coca Cola HBC using a CFD, at the current price of 2383p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Coca Cola HBC share price rises to 2800p (+17.5%). Your profit would be £1750, 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. Coca Cola HBC shares continue falling as a result of the downgrade, 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.