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

• Stifel upgrades to Buy, with a 140p target (up from 125p).
• Consensus: 11 Buys, 3 Holds, 0 Sell; Avg target: 127p (Source: Bloomberg).
• Current share price 93.2p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 144p Oct highs?
• Shares -.1% from 2019 highs; +53.5% from 2019 lows; +40% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Premier Oil – An Example

Let’s say you think that Premier Oil shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Premier Oil using a CFD, at the current price of 93.2p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Premier Oil share price rises to 144p Oct highs (+54%). Your profit would be £5450 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. Premier Oil shares 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.