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

• UBS upgrades Fesnillo to Buy, target price to 1100p.
• Current share price 920p (at time of writing).
• Will the shares turn back, or will the upgrade push them towards 1119p?
• Shares -8.1% from 2019 highs; +5.2% from 2019 lows; +7% year-to date
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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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 920p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Fesnillo share price rises to late Jul highs of 1119p (+21.6%). 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 9% from the current price. Fesnillo shares fall 9% 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.