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

• Barclays upgrades to Overweight with a 1100p target
• Consensus summary: 12 Buys, 13 Holds, 3 Sell; Average target: 1058p (Source: Bloomberg).
• Current share price 973p (at time of writing).
• Shares -0.7% from 2019 highs; +23% off 2019 lows; +14.9% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 973p. To do this, you need £2,000.

For the purpose of this example, let’s assume the WPP share price rises back to 1149p (+18%). Your profit would be £1800 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. WPP shares 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.