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

• Morgan Stanley upgrades to Overweight with a target price of 1250p.
• Consensus: 12 Buys, 6 Holds, 2 Sell; Avg target: 1222p (Source: Bloomberg).
• Current share price 791p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 867p recent highs?
• Shares -35.4% from 2019 highs; +6.4% from 2019 lows; -29.4% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 791p. To do this, you need £2,000.

For the purpose of this example, let’s assume the TUI share price rises to 867p recent highs (+9.6%). Your profit would be £960 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. TUI 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.