On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why they are bearish on them:
Coles Group Ltd (ASX: COL)
According to a note out of Morgan Stanley, its analysts have downgraded this supermarket giant’s shares to an underperform rating but lifted the price target on them to $13.50. The broker made the move largely on valuation grounds after a strong share price gain over the last 12 months. In addition to this, the broker notes that rival Woolworths Group Ltd (ASX: WOW) has a margin advantage and doesn’t expect this to change in the medium term due to its scale advantage. The Coles share price is up 2% to $15.80 today.
Sandfire Resources NL (ASX: SFR)
A note out of Goldman Sachs reveals that its analysts have downgraded this copper producer’s shares to a sell rating with a $5.20 price target. According to the note, the broker is bullish on the copper price in 2020, but negative on Sandfire Resources. This follows the broker’s reduction in Sandfire Resources’ net asset valuation due to concerns over its development projects. Goldman has looked over them and believes they will generate low returns. Its shares are down 0.5% to $5.95 in late morning trade.
Wesfarmers Ltd (ASX: WES)
Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this conglomerate’s shares slightly to $32.51. According to the note, the broker has reduced its forecasts for Wesfarmers’ safety and industrial segment. And while it expects the key Bunnings, Kmart, and Target businesses to deliver positive comparable store sales growth in the first half, it isn’t enough to warrant a change in recommendation. The broker appears concerned by its valuation, which it feels is more fitting of a growth share. The Wesfarmers share price is down 0.5% to $43.36 on Tuesday.
The post Leading brokers name 3 ASX shares to sell today appeared first on Motley Fool Australia.
Those may be the shares to sell, but here are three top shares that have been rated as buys.
You’re invited! For a limited time, The Motley Fool Australia is giving away a fantastic FREE report detailing our 3 TOP BLUE CHIP SHARES to buy and own for now and beyond!.
So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!
Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...
While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...
Even better, Stock #3 offers a whopping grossed-up dividend of over 6%! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.
You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020