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

• Peel Hunt initiates coverage at Add, with a target of 230p.
• Consensus summary: 3 Buys, 9 Holds, 4 Sell; Average target: 202p (Source: Bloomberg).
• Current share price 213p (at time of writing).
• Shares -21.1% from 2019 highs; +24.3% from 2019 lows; +15.2% 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 shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Acacia using a CFD, at the current price of 211p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Acacia  share price rises to 400p (+11%). Your profit would be £1100 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. Acacia shares 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.