Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Cairn Energy share price more attractive?
- AlphaValue upgrades Cairn Energy to Buy, with a target of 184p.
- Consensus summary: 17 Buys, 5 Holds, 0 Sell; Average target: 258p (Source: Bloomberg).
- Current share price 150p (at time of writing).
- Shares -30.2% from 2019 highs; +3.8% from 2019 lows; +0.4% year-to date
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Cairn Energy – An Example
Let’s say you think that Cairn Energy shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Cairn Energy using a CFD, at the current price of 150p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Cairn Energy share price rises to 170p ceiling highs (+13%). Your profit would be £1,300 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. Cairn Energy shares break lower, 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.