Does this Upgrade present an opportunity for you?

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

• The chart shows the Ferrexpo share price movements over the last year.
• Shares -34.8% from 2018 highs; +51.9% from 2018 lows; -23.3% year-to date
• Barclays upgrades Ferrexpo to Overweight (from underweight), and price target to 300p (from 140p)
• Consensus summary: 9 Buys, 4 Holds, 1 Sell; Average target: 218p (Source: Bloomberg).
• Current share price 225p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards March 319p highs?

Click to enlarge

Trading Ferrexpo – An Example

Let’s say you think that Ferrexpo shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Ferrexpo using a CFD, at the current price of 225p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Ferrexpo share price rises to 319p (+42%). Your profit would be £4200 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. Ferrexpo shares continue their downtrend, they 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.