With many brokers taking a well-deserved break after a busy year, it has been a little quiet on the broker note front this week.
To fill the void, I have picked out three broker sell recommendations that have caught my eye this month.
Here’s why leading brokers think investors should be selling these ASX shares:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of UBS, its analysts have retained their sell rating and $8.00 price target on this iron ore producer’s shares. The note reveals that the broker feels that Fortescue’s shares have got ahead of themselves this year. Furthermore, the broker is expecting iron ore supply to normalise in the near term. Combined, it fears this could weigh heavily on its share price in 2020. The Fortescue share price last traded at $10.91.
National Australia Bank Ltd (ASX: NAB)
Analysts at Morgan Stanley have retained their underweight rating and trimmed the price target on this banking giant’s shares to $24.00. According to the note, the broker believes that NAB could be forced to raise ~$3.5 billion of capital in the near future to fund its transformation plans, strengthen its balance sheet, and cover potential penalties from legal or regulatory action. It suspects this could also force the bank to cut its dividend further. The NAB share price was last trading at $24.86.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted the price target on this wine company’s shares to $15.30. According to the note, recent industry data shows that the company’s sales in the US wine market are softening. The broker also points out that wine export data is unfavourable. It notes that both Australian alcohol exports and Chinese wine import data continue to deteriorate and are turning negative on a two-year CAGR basis. The Treasury Wine share price was changing hands at $16.65 on Tuesday.
The post Leading brokers name 3 ASX shares to sell appeared first on Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of National Australia Bank 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