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

• Day by Day upgrades to Buy, with a price target of 250p.
• Consensus summary: 13 Buys, 1 Holds, 0 Sell; Average target: 240p (Source: Bloomberg).
• Current share price 175p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 190p highs?
• Shares currently trade -15.1% from 2019 highs; +13.3% from 2019 lows; +6.6% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Melrose Industries – An Example

Let’s say you think that Melrose shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Melrose using a CFD, at the current price of 175p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Melrose share price rises to 190p (+8.5%). Your profit would be £850 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. Melrose 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.