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

• The chart shows the Vodafone share price movements since late July.
• New Street Research upgraded Vodafone to Buy, and upped its target to 200p.
• Consensus summary: 18 Buys, 6 Holds, 4 Sell; Average target: 202.7p (Source: Bloomberg).
• Current share price 162.23p (at time of writing).
• Shares -33% from 2018 highs; +12.7% from 2018 lows; -30.9% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Vodafone – An Example

Let’s say you think that Vodafone shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Vodafone using a CFD, at the current price of 162.23p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Vodafone share price rises to 171p (+5.9%). Your profit would be £590 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. Vodafone shares continue their downtrend, they fall 2% and hit your stop-loss. Your loss would be £200.

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