Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the Paddy Power Betfair share price more attractive?

• The chart shows the Paddy Power Betfair share price since late September.
• Berenberg upgrades Paddy Power Betfair to Hold, while trimming the target price to 6,500p.
• Consensus summary: 4 Buys, 7 Holds, 8 Sell; Average target: 7,161p (Source: Bloomberg).
• Current share price 6,070p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards October highs of 6,767p?
• Shares -34.5% from 2018 highs; now trading around 2018 lows; -31.2% year-to date

Click to enlarge

Trading Paddy Power Betfair – An Example

Let’s say you think that Paddy Power Betfair shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Paddy Power Betfair using a CFD, at the current price of 6,070p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Paddy Power Betfair share price rises to 6,767p (+11.4%). Your profit would be £1,140 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. Paddy Power Betfair shares continue their downtrend, they fall 8% and hit your stop-loss. Your loss would be £800.

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