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

• Berenberg upgrades to Buy with a target price of 1040p.
• AlphaValue also upgrades to Buy with a target of 1337p
• Consensus: 10 Buys, 16 Holds, 2 Sell; Avg target: 1215p (Source: Bloomberg).
• Current share price 1011p (at time of writing).
• Will the shares turn back, or will they rally back to recent 1367p highs?
• Shares -26% from 2019 highs; +1.4% from 2019 lows; -8.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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 1011p. To do this, you need £2,000.

For the purpose of this example, let’s assume the easyJet share price rises to recent highs at 1367p (+35.2%). Your profit would be £3520 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. easyJet shares 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.