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

• The chart shows the Petrofac share price since August 2015.
• Kepler Cheuvreux upgraded Petrofac to Buy, setting a target of 720p.
• Consensus summary: 7 Buys, 7 Holds, 2 Sell; Average target: 673.92p (Source: Bloomberg).
• Current share price 477p (at time of writing).
• Shares -32.25% from 2018 highs; +14.66% from 2018 lows; -6.67% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Petrofac – An Example

Let’s say you think that Petrofac shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Petrofac using a CFD, at the current price of 477p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Petrofac share price rises to 528p (+10.6%). Your profit would be £1060 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. Petrofac shares 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.