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

• Societe General upgrades to Buy, with a target price of 2360p.
• Consensus: 17 Buys, 11 Holds, 3 Sell; Avg target: 2256p (Source: Bloomberg).
• Current share price 1900p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards recent 2228p April highs?
• Shares -14.9% from 2019 highs; +13.8% from 2019 lows; +8.5% year-to date.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Anglo American– An Example

Let’s say you think that Anglo American shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Anglo American using a CFD, at the current price of 1900p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Anglo American share price rises to 2228p April highs (+17.2%). Your profit would be £1720 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. Anglo American 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.