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

• The chart shows the Hochschild Mining share over the last month.
• Numis has upgraded its rating to Add and its target price to 220p
• Consensus summary: 5 Buys, 2 Holds, 0 Sell; Average target: 230.8p (Source: Bloomberg).
• Current share price 189.8p (at time of writing).
• Shares -11% from 2019 highs; +35.3% from 2019 lows; 52 week high 211.8 (-10.5%)
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Hochschild Mining – An Example

Let’s say you think that Hochschild Mining shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Hochschild Mining using a CFD, at the current price of 189.7p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hochschild Mining share price rises to  220p (+16%). Your profit would be £1600 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. Hochschild Mining shares continue their downtrend, 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.