Antofagasta
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Antofagasta share price more attractive?
- The chart shows the Antofagasta share price since the beginning of 2018.
- UBS upgrades Antofagasta to Neutral, leaving the target price unchanged at 800p.
- Consensus summary: 13 Buys, 6 Holds, 6 Sell; Average target: 900p (Source: Bloomberg).
- Current share price 770p (at time of writing).
- Recent results were mixed, with production falling in the first 9 months, but the copper miner forecast higher output in 2019.
- 24 Oct: RBC Capital Markets says Antofagasta is still the best way to get into the copper market.
- Shares -35.4% from 2018 highs; +6% from 2018 lows; -23.3% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading Antofagasta – An Example
Let’s say you think that Antofagasta shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 770p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Antofagasta share price rises to 1012p July high (+31.4%). Your profit would be £3140 from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Antofagasta shares continue their downtrend, they fall 10% and hit your stop-loss. Your loss would be £1000.
This is provided for information purposes only. It should not be taken as a recommendation.