Does this Upgrade present an opportunity for you?

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

• The chart shows the Morrisons share price movements since late August.
• Shares -4.8% from 2018 highs; +26.7% from 2018 lows; +19.1% year-to date
• Credit Suisse has upgraded Morrisons to Outperform (from Neutral).
• Credit Suisse has also upped its target price to 285p (from 255p).
• Consensus summary: 6 Buys, 6 Holds, 6 Sell; Average target: 252p (Source: Bloomberg).
• Current share price 261.5p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards recent 269p highs?

Click to enlarge

Trading Morrisons  – An Example

Let’s say you think that Morrisons  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Morrisons  using a CFD, at the current price of 261p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Morrisons share price rises to 269p (+3%). Your profit would be £300 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. Morrisons shares continue their downtrend, they 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.