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

• The chart shows the CYBG share price since mid-October.
• Shore Capital upgrades CYBG to Buy.
• Consensus summary: 8 Buys, 7 Holds, 4 Sell; Average target: 304p (Source: Bloomberg).
• Current share price 204p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 278p recent highs?
• Shares -43.8% from 2018 highs; +1% from 2018 lows; -40% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading CYBG – An Example

Let’s say you think that CYBG shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of CYBG using a CFD, at the current price of 204p. To do this, you need £2,000.

For the purpose of this example, let’s assume the CYBG share price rises to 278p (+36%). Your profit would be £3600 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. CYBG shares continue their downtrend, they fall 9% and hit your stop-loss. Your loss would be £900.

This is provided for information purposes only. It should not be taken as a recommendation.