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

• The chart shows easyJet share price movements since June.
• Cantor Fitzgerald has upgraded easyJet to a Buy, with a target price at 1500p
• Consensus summary: 14 Buys, 10 Holds, 4 Sells; Average target: 1467.76p (Source: Bloomberg)
• Current share price is 1240p (at time of writing)
• Will the shares turn back, or will the upgrade push the shares back towards 1443p mid-Sept highs?
• Shares -33.26% from 2018 highs; +13.7% from 2018 lows; -15.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading easyJet – An Example

Let’s say you think that easyJet shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of easyJet using a CFD, at the current price of 1240p. To do this, you need £2,000.

For the purpose of this example, let’s assume the easyJet share price rises to 1443p (+16.3%). Your profit would be £1630, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. easyJet shares continue falling as a result of the downgrade, they fall 7% and hit your stop-loss. Your loss would be £700.

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