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

• Investec upgrades to Buy with a target of 580p.
• Consensus: 3 Buys, 6 Holds, 5 Sell; Avg target: 644p (Source: Bloomberg).
• Current share price 512p (at time of writing).
• Will the shares turn back, or will they rally back towards recent 700p highs (+36%)?
• Shares -76.8% from 2019 highs; +8.3% from 2019 lows; -69.6% 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 512p. 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 700p (+36). Your profit would be £3600 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.