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

• Keffer, Bruyetter & Woods upgrades to Outperform with a target of 1300p.
• Consensus: 3 Buys, 5 Holds, 6 Sell; Avg target: 1220p (Source: Bloomberg).
• Current share price 878p (at time of writing).
• Will the shares turn back, or will they rally back towards recent 1546p highs?
• Shares -60.4% from 2019 highs; +20.7% from 2019 lows; -48.2% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Metro Bank – An Example

Let’s say you think that Metro Bank shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Metro Bank using a CFD, at the current price of 878p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Metro Bank share price rises to prior highs of 1546p (+76%). Your profit would be £7600 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. Metro Bank shares 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.