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

• Day by Day upgrades to Buy with a 1090p target
• Consensus: 12 Buys, 4 Holds, 5 Sell; Avg target: 1053p (Source: Bloomberg).
• Current share price 908p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent highs of 1003p?
• Shares -9.5% from 2019 highs; +15.2% from 2019 lows; +9.4% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Rolls Royce – An Example

Let’s say you think that Rolls Royce shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Rolls Royce using a CFD, at the current price of 908p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Rolls Royce share price rises to 1003p (+10%). Your profit would be £1000 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. Rolls Royce 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.