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

• Arqaam upgrades to Hold (from Sell) with a 393p target.
• Consensus: 5 Buys, 8 Holds, 1 Sell; Avg target: 432p (Source: Bloomberg).
• Current share price 313p (at time of writing).
• Will the shares turn back, or will the upgrade push them to Jan highs of 340.7p?
• Shares -55.9% from 2018 highs; +7.3% from 2019 lows; -3.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 313p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Mediclinic share price rises to Jan highs of 340.7p (+8.8%). Your profit would be £880 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Mediclinic shares fall 3% and hit your stop-loss. Your loss would be £300.

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