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

• Peel Hunt starts coverage at Buy, with a target of 620p.
• Consensus summary: 10 Buys, 5 Holds, 1 Sell; Average target: 628p (Source: AlphaTerminal).
• Current share price 537p (at time of writing).
• Shares -1.6% from 2019 highs; +7.5% from 2019 lows; +4.5% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading RSA – An Example

Let’s say you think that RSA shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of RSA using a CFD, at the current price of 537p. To do this, you need £2,000.

For the purpose of this example, let’s assume the RSA share price rises to 643p Aug highs (+19.7%). Your profit would be £1970 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. RSA shares fall 7% and hit your stop-loss. Your loss would be £700.

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