Does this present an opportunity for you?

Is it irrelevant, or will the Downgrade make Hays share price attractive?

• The chart shows Hays’ share price movements over the past month
• HSBC has downgraded Hays to a Hold rating, with a target price at 205p
• Summary of current ratings:
  • 2 Buys
  • 12 Holds
  • 1 Sells
• Average target price is at 204p (Source: Bloomberg)
• Current share price is 203.8p (at time of writing)
• 3 month lows at 191p. 3 month highs at 213.5p.
• Will it bounce back, or will the downgrade push the shares back towards 191p August lows?

Click to enlarge

Trading Hays – An Example

Let’s say you think that Hays shares have bottomed out as result of this downgrade. You decide to buy exposure to £10,000 worth of Hays using a CFD, at the current price of 203p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hays share price rises by 7%. Your profit would be £700, 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. Hays’ shares continue falling as a result of the downgrade, they falls 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.