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

• The chart shows the Inchcape share price since mid-October.
• HSBC has upgraded its rating to Buy and improved the target price to 690p (from 650p)
• Consensus summary: 3 Buys, 2 Holds, 0 Sell; Average target: 663p (Source: Bloomberg).
• Current share price 576p (at time of writing).
• 8 Nov: Q3 revenue rose 2% year-on-year and the company expects “resilient performance” this year.
• Shares -31.17% from 2018 highs; +17.9% from 2018 lows; -26.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

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Trading Inchcape – An Example

Let’s say you think that Inchcape shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Inchcape using a CFD, at the current price of 576p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Inchcape share price rises to Octoberhigh of 620p (+7.6%). Your profit would be £760 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Inchcape shares continue their downtrend, they fall 3% and hit your stop-loss. Your loss would be £300.

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