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

• Barclays upgrades to Equalweight, reiterating its 680p target
• Consensus: 7 Buys, 3 Holds, 0 Sells; Average target: 748p (Source: Bloomberg).
• Current share price 637p (at time of writing).
• Shares -13.9% from 2018 highs; +18.1% from 2018 lows; +13.1% year-to date
• 29 Nov: Phoenix beats cash-generation goal, strengthens capital position
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Phoenix Group – An Example

Let’s say you think that Phoenix shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Phoenix using a CFD, at the current price of 637p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Phoenix share price rises to 707p (+11%). Your profit would be £1100 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. Phoenix shares break lower, 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.