Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite bearish.
Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of UBS, its analysts have initiated coverage on this payments company with a sell rating and $17.25 price target. The broker made the move on the belief that excessive growth has already been priced into its shares. UBS also believes there is a risk that the bigger Afterpay and the buy now pay later market gets, the more likely regulators are going to view it as a credit product. It believes this could lead to the market derating its shares to lower multiples. The Afterpay share price fell 15.6% last week to end it at $29.65. Incidentally, Morgan Stanley also initiated coverage on its shares last week. However, it commenced coverage with an overweight rating and $44.00 price target.
Bank of Queensland Limited (ASX: BOQ)
A note out of Citi reveals that its analysts have downgraded this regional bank’s shares to a sell rating and cut the price target on them to $8.50 following its full year result. According to the note, Citi was surprised by a jump in bad debts which led to a weak result. It also has concerns over its earnings, capital position, and dividend. It suspects that all three could still weaken further, hence the downgrade to a sell rating. Bank of Queensland’s shares finished the week at $9.15.
Inghams Group Ltd (ASX: ING)
Analysts at UBS have retained their sell rating and $3.10 price target on this poultry producer’s shares after its AGM. According to the note, the broker continues to believe that its earnings could come under pressure in the near term due to higher feed costs. It estimates a feed cost headwind of almost $50 million in FY 2020. This could be revealed at next week’s strategy update. Hence why UBS remains sell-rated despite its shares closing at $2.92 on Friday.
The post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.
Those may be the shares to sell, but here are the three quality shares that Edward Vesely has just rated as buys.
When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.
- 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
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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