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

• JPMorgan upgrades to Overweight with a target of 480p.
• Consensus summary: 6 Buys, 5 Holds, 1 Sell; Average target: 421p (Source: Bloomberg).
• Current share price 421p (at time of writing).
• Shares -5.7% from 2019 highs; +53.7% from 2019 lows; +11% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Sophos – An Example

Let’s say you think that Sophos shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Sophos using a CFD, at the current price of 421p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Sophos share price rises to 498p (+18%). Your profit would be £1800 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. Sophos shares continue their 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.