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

• The chart shows Informa’s share price movements since March 2017.
• Shares -18.3% from 2018 highs; +8% from 2018 lows; +1% year-to date
• Dual broker upgrade today.
• Keplex Cheavreux upgraded to Buy, with a target price at 810p.
• Credit Suisse upgraded to Outperform, with a target price at 985p.
• Consensus summary: 16 Buys, 2 Holds, 0 Sell; Average target: 904.25p (Source: Bloomberg).
• Current share price 729p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 869p July highs?

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Trading Informa – An Example

Let’s say you think that Informa  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Informa  using a CFD, at the current price of 729p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Informa share price rises to 869p July highs (+19.2%). Your profit would be £1920 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. Informa shares 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.