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

• Numis upgrades to Buy, with a target price of 320p.
• Consensus: 14 Buys, 10 Holds, 2 Sell; Avg target: 298p (Source: Bloomberg).
• Current share price 239p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent 266p highs?
• Shares -12.6% from 2019 highs; +14.5% from 2019 lows; +10.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RBS – An Example

Let’s say you think that RBS shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of RBS  using a CFD, at the current price of 239p. To do this, you need £2,000.

For the purpose of this example, let’s assume the RBS share price rises to 266p recent highs (+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. RBS shares 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.