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

• Citigroup upgrades to Buy, with a target of 155p
• Consensus summary: 3 Buys, 5 Holds, 1 Sell; Average target: 151p (Source: AlphaTerminal).
• Current share price 130p (at time of writing).
• Shares -25.5% from 2019 highs; +14.3% from 2019 lows; -1.7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Stagecoach – An Example

Let’s say you think that Stagecoach shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Stagecoach using a CFD, at the current price of 130p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Stagecoach share price rises to recent highs of 168p (+29%). Your profit would be £2900 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. Stagecoach shares 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.