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

• HSBC upgrades to Buy with a target price of 2748p.
• Consensus: 11 Buys, 7 Holds, 1 Sell; Avg target: 2826p (Source: Bloomberg).
• Current share price 2470p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 2700p Oct highs?
• Shares -3.2% from 2019 highs; +10.9% from 2019 lows; +5.6% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Shell – An Example

Let’s say you think that Shell shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Shell using a CFD, at the current price of 2470p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Shell share price rises to 2740p Oct highs (+10.9%). Your profit would be £1090 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. Shell 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.