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

• Exane BNP Paribas upgrades to Outperform with a target price of 1050p.
• Consensus: 12 Buys, 6 Holds, 7 Sell; Avg target: 891p (Source: Bloomberg).
• Current share price 987p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 1171p 2018 highs?
• Shares -0.55% from 2019 highs; +35.8% from 2019 lows; +26.24% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 987p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Antofagasta share price rises to 1171p 2018 highs (+18.6%). Your profit would be £1860 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. Antofagasta 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.