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

• Numis upgrades to Buy with a target price of 250p.
• Consensus: 4 Buys, 8 Holds, 4 Sell; Avg target: 201p (Source: Bloomberg).
• Current share price 199p (at time of writing).
• Will the shares turn back, or will they rally back to recent 268p highs?
• Shares -25.7% from 2019 highs; +17.2% from 2019 lows; +8.7% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Acacia Mining – An Example

Let’s say you think that Acacia Mining shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Acacia Mining using a CFD, at the current price of 199p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Acacia Mining share price rises to recent highs at 268p (+34.6%). Your profit would be £3460 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. Acacia Mining 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.