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

• The chart shows the Johnson Matthey share price since late April.
• Redburn upgrades Johnson Matthey to Buy from Neutral.
• Consensus summary: 12 Buys, 6 Holds, 2 Sell; Average target: 3619.5p (Source: Bloomberg).
• Current share price 2922p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 3177p November highs?
• Shares -1.8% from 2018 highs; +10.2% from 2018 lows; +4.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Johnson Matthey – An Example

Let’s say you think that Johnson Matthey shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Johnson Matthey using a CFD, at the current price of 2922p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Johnson Matthey share price rises to 3177p November highs (+8.7%). Your profit would be £870 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Johnson Matthey shares continue their downtrend, they fall 4% and hit your stop-loss. Your loss would be £400.

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