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

• AlphaValue upgrades Cairn Energy to Buy, with a target of 184p.
• Consensus summary: 17 Buys, 5 Holds, 0 Sell; Average target: 258p (Source: Bloomberg).
• Current share price 150p (at time of writing).
• Shares -30.2% from 2019 highs; +3.8% from 2019 lows; +0.4% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Cairn Energy – An Example

Let’s say you think that Cairn Energy shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 150p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Cairn Energy share price rises to 170p ceiling highs (+13%). Your profit would be £1,300 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. Cairn Energy shares break lower, they 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.