Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make William Hill’s share price attractive?

• The chart shows William Hill’s share price movements since mid-March.
• Shares -25.6% from 2018 highs; +3.9% from 2018 lows; -20.1% year-to date
• Numis upgraded William Hill to Add (from Hold) and trimmed its target price to 310p (from 335p).
• Consensus summary: 10 Buys, 7 Holds, 1 Sell; Average target: 324.57p (Source: Bloomberg).
• Current share price 257p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 339p March highs?

Click to enlarge

Trading William Hill – An Example

Let’s say you think that William Hill shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of William Hill using a CFD, at the current price of 257p. To do this, you need £2,000.

For the purpose of this example, let’s assume the William Hill share price rises to 339p (+31.9%). Your profit would be £3,190 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. William Hill shares continue their July downtrend, they fall 10% and hit your stop-loss. Your loss would be £1,000.

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