Does this Upgrade present an opportunity for you?

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

• The chart shows the National Grid share price movements since February.
• Berenberg upgrades National Grid to Buy with a revised target of 1050p.
• Analysts note political and regulatory concerns but say “current price is undeserved”
• Consensus summary: 11 Buys, 9 Holds, 0 Sell; Average target: 923p (Source: Bloomberg).
• Current share price 801p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards May highs of 888p?
• Shares -9.8% from 2018 highs; +10.2% from 2018 lows; -8.4% year-to date

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Trading National Grid – An Example

Let’s say you think that National Grid shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of National Grid using a CFD, at the current price of 801p. To do this, you need £2,000.

For the purpose of this example, let’s assume the National Grid share price rises to 888p (+8.6%). Your profit would be £860 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. National Grid 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.