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

• Liberum upgrades to Buy, with a target price of 250p.
• Consensus: 10 Buys, 3 Holds, 1 Sell; Avg target: 298p (Source: Bloomberg).
• Current share price 214p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent 305p April highs?
• Shares -30% from 2019 highs; +19.4% from 2019 lows; +10% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Ferrexpo – An Example

Let’s say you think that Ferrexpo shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 214p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ferrexpo share price rises to 305p April highs (+42%). Your profit would be £4200 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. Ferrexpo 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.