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

• The chart shows the Mediclinic share price movements since late October.
• JP Morgan upgrades Mediclinic to Overweight with a target price of 394p
• Consensus summary: 5 Buys, 7 Holds, 2 Sell; Average target: 436p (Source: Bloomberg).
• Current share price 310p (at time of writing).
• Shares -57.3% from 2018 highs; +3.0% from 2018 lows; -4.0% year-to date
• Will the shares turn back, or will the upgrade push the shares back towards 411p highs?
• 12 Dec: Mediclinic Middle East to deliver FY19 rev growth in high single-digits
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading Mediclinic – An Example

Let’s say you think that Mediclinic shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Mediclinic using a CFD, at the current price of 310p. To do this, you need £2,000.

For the purpose of this example, let’s assume the Mediclinic share price rises to 436p (+40.6%). Your profit would be £4060 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. Mediclinic shares 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.