Does this Upgrade present an opportunity for you?

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

• The chart shows the Londonmetric share price movements since early April.
• Shares -9.0% from 2018 highs; +7.9% from 2018 lows; -1.1% year-to date
• Barclays has initiated coverage of Londonmetric with an Overweight/Buy rating.
• Barclays has set a target price of 200p.
• Consensus summary: 3 Buys, 9 Holds, 0 Sell; Average target: 197p (Source: Bloomberg).
• Current share price 184p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards May 196p highs?

Click to enlarge

Trading Londonmetric – An Example

Let’s say you think that Londonmetric shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Londonmetric  using a CFD, at the current price of 184p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Londonmetric share price rises to 196p (+6.5%). Your profit would be £650 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. Londonmetric 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.