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

• HSBC upgrades to Buy, with a target price of 160p.
• Consensus: 17 Buys, 7 Holds, 2 Sell; Avg target: 178p (Source: Bloomberg).
• Current share price 126p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 140p?
• Shares -20.5% from 2019 highs; +3.2% from 2019 lows; -17.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 126p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Vodafone share price rises to 140p (+11.1%). Your profit would be £1110 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. Vodafone 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.