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

• The chart shows the Hunting share price since March.
• Canaccord has upgraded its rating to Buy, with a target price of to 775p
• Consensus summary: 7 Buys, 6 Holds, 2 Sell; Average target: 878p (Source: Bloomberg).
• Current share price 673p (at time of writing).
• Hunting is an oil & gas services company
• 30 Oct: Hunting says Q3 revenues steady, backs full-year outlook
• 26 Oct: Numis expects Hunting to flag ongoing momentum in Q3 results
• Source: Bloomberg, FT, Reuters, DJ Newswires

Click to enlarge

Trading Hunting – An Example

Let’s say you think that Hunting shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Hunting using a CFD, at the current price of 673p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Hunting share price rises to late Sept highs of 844p (+25%). Your profit would be £2540 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. Hunting 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.