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

• The chart shows the WPP share price since late September.
• Twin upgrade today.
• Berenberg upgraded the shares to Hold (from Sell).
• Invest Securities upgraded the shares to Neutral (from Sell).
• Consensus summary: 10 Buys, 15 Holds, 4 Sell; Average target: 1070p (Source: Bloomberg).
• Current share price 869p (at time of writing).
• Shares -42.7% from 2018 highs; +5.2% off 2018 lows; -35.2% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading WPP – An Example

Let’s say you think that WPP shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of WPP using a CFD, at the current price of 869p. To do this, you need £2,000.

For the purpose of this example, let’s assume the WPP share price rises back to to 1156p October highs (+33%). Your profit would be £3300 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 9% from the current price. WPP shares fall 9% and hit your stop-loss. Your loss would be £900.

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