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

• AlphaValue upgrades to Add (from Reduce), with a price target of 981p.
• Consensus summary: 7 Buys, 9 Holds, 2 Sells; Average target: 896p (Source: Bloomberg).
• Current share price 891p (at time of writing).
• Shares now trade -16.1% from 2019 highs; +13.1% from 2019 lows; +12.75% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ocado – An Example

Let’s say you think that Ocado shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ocado using a CFD, at the current price of 891p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ocado share price rises to February high of 1041p (+16.8%). Your profit would be £1680 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. Ocado shares continue their downtrend, they 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.