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

• Morgan Stanley upgrades Dixons to Overweight, target price to 240p.
• 28 Jan: Dixons Carphone shares look too cheap, says Morgan Stanley
• Consensus: 7 Buys, 6 Holds, 1 Sell; Average target: 181p (Source: AlphaTerminal).
• Current share price 146p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 180p?
• Shares -8.1% from 2019 highs; +5.2% from 2019 lows; +7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Dixons – An Example

Let’s say you think that Dixons shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Dixons using a CFD, at the current price of 146p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Dixons share price rises to 180p Nov highs (+23.3%). Your profit would be £2330 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. Dixons shares break lower, 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.