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

• Berenberg upgrades to Buy with a target of 590p.
• Consensus summary: 9 Buys, 4 Holds, 3 Sell; Average target: 629p (Source: Bloomberg).
• Current share price 493p (at time of writing).
• Shares -18.8% from 2019 highs; +29.9% from 2019 lows; -2.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading John Wood – An Example

Let’s say you think that John Wood shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of John Wood using a CFD, at the current price of 493p. To do this, you need £2,000.

For the purpose of this example, let’s assume the John Wood share price rises to 595p (+20%). Your profit would be £2000 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. John Wood shares continue their downtrend, they fall 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.