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

• The chart shows the Centamin share price movements over the last 2.5 months.
• Morgan Stanley upgrades Centamin to Overweight with a target of 125p
• Consensus summary: 10 Buys, 5 Holds, 0 Sell; Average target: 132.8p (Source: Bloomberg).
• Current share price 102p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards recent highs of 109.7p?
• Shares -41.6% from 2018 highs; +15.9% from 2018 lows; -35.7% year-to date
• Source: Dow Jones, Bloomberg, FT, Company News

Click to enlarge

Trading Centamin – An Example

Let’s say you think that Centamin shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Centamin using a CFD, at the current price of 102p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Centamin share price rises to 109.7p (+7.5%). Your profit would be £750 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. Centamin 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.