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

• Goldman Sachs upgrades to Neutral, and hikes the target price to 66p.
• Consensus: 17 Buys, 8 Holds, 3 Sell; Avg target: 71.8p (Source: Bloomberg).
• Current share price 63.25p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 67.3p May highs?
• Shares -1.2% from 2019 highs; +26% from 2019 lows; +21.9% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Lloyds – An Example

Let’s say you think that Lloyds shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Lloyds using a CFD, at the current price of 63.25p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Lloyds share price rises to 67.3p May highs (+6.4%). Your profit would be £640 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. Lloyds shares 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.