Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make Savills’ share price attractive?

• The chart shows Savills’ share price movements since mid-May.
• Shares -25.9% from 2018 highs; +2.3% from 2018 lows; -20.6% year-to date
• Peel Hunt upgraded Savills to Buy (from Hold) and reiterated its 990p target price.
• Consensus summary: 4 Buys, 0 Holds, 0 Sell; Average target: 1062p (Source: Bloomberg).
• Current share price 789p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 983p May/June highs?

Click to enlarge

Trading Savills – An Example

Let’s say you think that Savills shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Savills using a CFD, at the current price of 789p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Savills share price rises to 983p (+24.6%). Your profit would be £2,460 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. Savills shares continue their July downtrend, they 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.