Does this Upgrade present an opportunity for you?

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

• The chart shows Fresnillo’s ’ share price movements over the past 2 months.
• RBC Capital Markets has upgraded Fresnillo to a Top Pick rating overnight, with a target price at 1,300p.
• Consensus summary: 7 Buys, 9 Holds, 0 Sells; Average target: 1,326p (Source: Bloomberg).
• Current share price is 801p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 879p prior highs?

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Trading Fresnillo – An Example

Let’s say you think that Fresnillo shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Fresnillo using a CFD, at the current price of 801p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Fresnillo share price rises to 879p. Your profit would be £970, 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. Fresnillo shares continue falling as a result of the downgrade, 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.