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

• The chart shows the William Hill share price since mid-September.
• Today UBS upgrades William Hill to Buy, adjusting its target price to 300p (from 330p).
• Consensus summary: 10 Buys, 6 Holds, 1 Sell; Average target: 300p (Source: Bloomberg).
• Current share price 218.7p (at time of writing).
• 5 Nov: UBS Says William Hill well positioned to expand in US
• 31 Oct: William Hill acquires Swedish online gaming group Mr Green & Co for £242m
• Shares -35.9% from 2018 highs; +15.2% from 2018 lows; -32.3% year-to date
• William Hill reports Q3 results tomorrow 
• Source: Bloomberg, FT, Reuters, DJ Newswires

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 218.7p. To do this, you need £2,000.

For the purpose of this example, let’s assume the William Hill share price rises to 266p September high (+21.6%). Your profit would be £2160 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 5% from the current price. William Hill shares break lower, they fall 5% and hit your stop-loss. Your loss would be £500.

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