Is it irrelevant, or will the Upgrade make the Watches of Switzerland share price more attractive?

• 4 brokers started coverage today at Buy, with targets of 325p to 380p.
• Consensus summary: 4 Buys, 0 Holds, 0 Sell; Average target: 347p (Source: Bloomberg).
• Current share price 287p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 313p highs (+9%)?
• Shares currently trade -8.7% from 2019 highs; +8.5% from 2019 lows; -5.8% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Watches of Switzerland – An Example

Let’s say you think that Watches of Switzerland shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Watches of Switzerland using a CFD, at the current price of 287p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Watches of Switzerland share price rises to 313p (+9%). Your profit would be £100 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. Watches of Switzerland 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.