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

• The chart shows the Antofagasta share price since the beginning of 2018.
• Goldman Sachs upgrades Antofagasta to Neutral, adjusting the target price to 850p (from 720p)
• Consensus summary: 13 Buys, 8 Holds, 4 Sell; Average target: 910.2p (Source: Bloomberg).
• Current share price 790p (at time of writing).
• 24 Oct: RBC Capital Markets says Antofagasta is still the best way to get into the copper market.
• 7 Nov: Bernstein says Antofagasta has a solid balance sheet .
• Shares -33.6% from 2018 highs; +9.1% from 2018 lows; -21.4% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Antofagasta – An Example

Let’s say you think that Antofagasta shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Antofagasta using a CFD, at the current price of 790p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Antofagasta share price rises to 902p September high (+14.1%). Your profit would be £1410 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 7% from the current price. Antofagasta shares continue their downtrend, they fall 7% and hit your stop-loss. Your loss would be £700.

This is provided for information purposes only. It should not be taken as a recommendation.