Petra Diamonds
Does this Upgrade present an opportunity for you?
Is it irrelevant, or will the Upgrade make the Petra Diamonds share price more attractive?
- Berenberg upgrades to Buy with a target price of 25p.
- Consensus: 8 Buys, 5 Holds, 1 Sell; Avg target: 43.4p (Source: Bloomberg).
- Current share price 18.1p (at time of writing).
- Will the shares turn back, or will they rally back to recent 20.1p highs?
- Shares -61% from 2019 highs; +8.7% from 2019 lows; -52% year-to date.
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
Trading Petra Diamonds – An Example
Let’s say you think that Petra Diamonds shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of Petra Diamonds using a CFD, at the current price of 18.1p. To do this, you need £2,000.
For the purpose of this example, let’s assume the Petra Diamonds share price rises to recent highs at 20.1p (+11%). Your profit would be £1100 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. Petra Diamonds shares 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.