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

• HSBC upgrades to Buy, with a target of 725p.
• Consensus summary: 9 Buys, 5 Holds, 0 Sell; Average target: 675.8p (Source: Bloomberg).
• Current share price 625p (at time of writing).
• Shares trade at 2019 highs; +30.4% from 2019 lows; +23.45% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Vesuvius – An Example

Let’s say you think that Vesuvius  shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Vesuvius  using a CFD, at the current price of 625p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Vesuvius share price rises to 666p 2018 highs (+6.5%). Your profit would be £650 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. Vesuvius  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.