Does this Upgrade present an opportunity for you?

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

• The chart shows Genel share price movements since August.
• Shares +135.8% from 2018 lows; -17.55% from 2018 lows; +132.8% year-to date
• GMP upgraded Genel to Speculative Buy (from Hold) and upped its target price to 365p (from 300p).
• Consensus summary: 8 Buys, 3 Holds, 1 Sell; Average target: 295.2p (Source: Bloomberg).
• Current share price 251p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 303p August highs?

Click to enlarge

Trading Genel – An Example

Let’s say you think that Genel shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Genel using a CFD, at the current price of 251p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Thomas Cook share price rises to 303p August highs (+20.7%). Your profit would be £2,070 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Genel shares continue their July downtrend, they fall 10% and hit your stop-loss. Your loss would be £1,000.

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