Does this Upgrade present an opportunity for you?

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

• The chart shows the Mediclinic share price movements over the last 6 months.
• Shares -37.7% from 2018 highs; +5.8% from 2018 lows; -30.8% year-to date
• Investec upgrades Mediclinic to Buy (from Hold)
• 8 Oct: Investec says “Mediclinic likely to make another takeover bid for rival Spire Healthcare“
• Consensus summary: 5 Buys, 9 Holds, 0 Sell; Average target: 602p (Source: Bloomberg).
• Current share price 449.2p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 506p September highs?

Click to enlarge

Trading Mediclinic – An Example

Let’s say you think that Mediclinic shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Mediclinic using a CFD, at the current price of 449.2p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Mediclinic share price rises to 506p (+12.6%). Your profit would be £1260 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 4% from the current price. Mediclinic shares fall 4% and hit your stop-loss. Your loss would be £400.

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