Tesco
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Tesco share price more attractive?
- The chart shows the Tesco share price since late 2015
- AlphaValue upgrades to Buy (from Add); price target unchanged at 248p
- Consensus summary: 14 Buys, 5 Holds, 2 Sell; Average target: 261p (Source: Bloomberg).
- Current share price 203p (at time of writing).
- Will the shares turn back, or will the upgrade push the shares back towards 265p August highs?
- Shares -24.6% from 2018 highs; +5.9% from 2018 lows; -3.1% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Tesco – An Example
Let’s say you think that Tesco shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Tesco using a CFD, at the current price of 203p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Tesco share price rises to 265p (+30.5%). Your profit would be £3050 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. Tesco 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.