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

• Goldman Sachs upgrades to Buy, with a target price of 925p.
• Consensus: 6 Buys, 9 Holds, 6 Sell; Avg target: 690p (Source: Bloomberg).
• Current share price 659p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent 687p highs?
• Shares -4.6% from 2019 highs; +7.7% from 2019 lows; +1.4% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading HSBC – An Example

Let’s say you think that HSBC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 659p. To do this, you need £2,000.

For the purpose of this example, let’s assume the HSBC share price rises to 688p highs (+4.4%). Your profit would be £440 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. HSBC shares fall 2% and hit your stop-loss. Your loss would be £200.

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