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

• Jefferies starts coverage at Buy with a target price of 8120p.
• Consensus: 14 Buys, 1 Holds, 0 Sell; Avg target: 8243p (Source: Bloomberg).
• Current share price 6877p (at time of writing).
• Will the shares turn back, or will they rally back to recent 7420p Sept highs?
• Shares -0.5% from 2019 highs; +17.6% from 2019 lows; +14.8% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading DCC – An Example

Let’s say you think that DCC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of DCC using a CFD, at the current price of 6877p. To do this, you need £2,000.

For the purpose of this example, let’s assume the DCC share price rises to prior highs of 7420p (+7.8%). Your profit would be £780 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. DCC shares fall 3% and hit your stop-loss. Your loss would be £300.

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