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:
Bendigo and Adelaide Bank Ltd (ASX: BEN)
According to a note out of Goldman Sachs, its analysts have held firm with their sell rating but improved their price target on this regional bank’s shares to $10.59 following its full year results release. Bendigo and Adelaide Bank posted a 6.6% decline in cash earnings to $415.7 million in FY 2019, which even fell short of the broker’s bearish estimates. And while its capital position and net interest margin were stronger than it expected, it wasn’t enough for a change in rating. The bank’s shares are trading 3% lower at $10.78 on Tuesday.
Mirvac Group (ASX: MGR)
A note out of Credit Suisse reveals that its analysts have downgraded this property company’s shares to an underperform rating from neutral but lifted the price target on them to $3.04. According to the note, although Mirvac delivered a full year result in line with expectations and its outlook was stronger than expected, its analysts have downgraded its shares on valuations grounds following a strong share price rise this year. The Mirvac share price is down 1.5% to $3.20 today.
REA Group Limited (ASX: REA)
Analysts at Morgans have retained their reduce rating but lifted the price target on this property listings company’s shares to $92.07 following the release of its full year results. According to the note, although the company appears confident that listing volumes will be strong in the second half of FY 2020, the broker isn’t convinced this will be the case. It has pushed back its forecasts for a meaningful rebound, which could mean REA Group disappoints over the next 12 months. The REA Group share price is trading 1% lower at $101.80 today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group 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. 2019