Is it irrelevant, or will the Upgrade make N Brown’s share price attractive?

• The chart shows N Brown’s share price movements since the beginning of the year.
• Peel Hunt has upgraded N Brown to Add, target price amended to 150p.
• Consensus summary: 4 Buys, 4 Holds, 0 Sell; Average target: 159p (Source: Bloomberg).
• Current share price 91p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards October highs at 144p ?
• Shares -4.2% from 2018 highs; +3.4% from 2018 lows; -3.3% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading N Brown – An Example

Let’s say you think that N Brown shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of N Brown using a CFD, at the current price of 91p. To do this, you need £2,000.

For the purpose of this example, let’s assume the N Brown share price rises to 144p (+58.2%). Your profit would be £5820 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. N Brown shares fall 7% and hit your stop-loss. Your loss would be £700.

This is provided for information purposes only. It should not be taken as a recommendation.