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

• The chart shows the TUI share price since late September.
• AlphaValue upgrades TUI to Buy, increasing the target price to 1581p (from 1490p)
• Consensus summary: 11 Buys, 7 Holds, 2 Sell; Average target: 1620.27p (Source: Bloomberg).
• Current share price 1240p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 1490p October highs?
• Shares -32% from 2018 highs; +1.3% from 2018 lows; -19.4% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading TUI – An Example

Let’s say you think that TUI shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of TUI using a CFD, at the current price of 1240p. To do this, you need £2,000.

For the purpose of this example, let’s assume the TUI share price rises to 1490p (+20.1%). Your profit would be £2010 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 8% from the current price. TUI shares continue their downtrend, they fall 8% and hit your stop-loss. Your loss would be £800.

This is provided for information purposes only. It should not be taken as a recommendation.