Does this Upgrade present an opportunity for you?

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

• The chart shows the Fesnillo share price since late May.
• RBC Capital Markets upgrades Fesnillo to Top Pick, while improving the target price from 909p to 1,300p.
• Consensus summary: 7 Buys, 9 Holds, 0 Sell; Average target: 1,239p (Source: Bloomberg).
• Current share price 906p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards May highs of 1,363p?
• Shares -40% from 2018 highs; +16% from 2018 lows; -36.6% year-to date

Click to enlarge

Trading Fesnillo – An Example

Let’s say you think that Fesnillo shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Fesnillo using a CFD, at the current price of 906p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Fesnillo share price rises to 1,200p (+32.4%). Your profit would be £3,240 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. Fesnillo shares continue their downtrend, they fall 10% and hit your stop-loss. Your loss would be £1,000.

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