Insights

The latest ASX shares to be hit by a broker downgrade

We might be emerging from one of the best reporting seasons in history, but this hasn’t brokers from downgrading ASX…
The post The latest ASX shares to be hit by a broker downgrade appeared first on The Motley Fool Australia. –

We might be emerging from one of the best reporting seasons in history, but this hasn’t brokers from downgrading ASX shares.

The S&P/ASX 200 Index (Index:^AXJO) gained 0.5% over the past month as several ASX shares posted record earnings and dividends.

But it isn’t all good news for the Healius Ltd (ASX: HLS) share price. Even after the medical services group posted strong growth for FY21, Goldman Sachs downgraded the Healius share price to “neutral” from “buy”.

ASX shares downgraded for lack of new surprises

This is largely because the broker reckons management has run out of rabbits to pull out its hat! Delivering positive surprises is key to driving outperformance for the Healius share price.

“Commentary that the base pathology business remains ‘slightly up’ in FY22 to date is encouraging, but is likely no longer sufficient to generate positive surprise,” said Goldman.

“Meanwhile, the Imaging business is currently held back by ongoing lockdowns but also continues to lag peers.”

How much is the Healius share price worth?

Sure, increased PCR testing for COVID-19 will bolster the company’s bottom line, but that’s arguably priced into the Healius share price, which is up around 65% since the start of the pandemic.

What’s more, management has ruled out further corporate restructure in the near-term.

Goldman’s 12-month price target on the Healius share price is $4.90 a share.

Too much of a good thing

Another to suffer a broker downgrade is the Mincor Resources NL (ASX: MCR) share price. The analysts at Macquarie Group Ltd (ASX: MQG) lowered its rating on the Mincor share price to “neutral” from “outperform”.

The move comes even after the nickel miner announced two impressive exploration results at Golden Mile and Location 1.

“We believe Golden Mile has the potential to add tonnes to our five-year production scenario with Location 1 requiring more drilling to better define its potential,” said Macquarie.

“MCR’s share price is up ~40% since the beginning of July [vs index ASX 200 up 3%], equivalent to an increase in market capitalisation of +$170m.

“We believe this move largely captures the potential of the discoveries at this stage.”

Downgraded ASX shares despite positive nickel outlook

Mincor’s production ramp-up and costs assumptions are the key risks to the broker’s forecasts for the miner.

Macquarie’s 12-month price target on the Mincor share price is $1.40 a share.

But this doesn’t mean the broker is turning bearish on nickel. If anything, the supply of the metal remained tight with only 273,000 tonnes of ferronickel imported to China in July.

This is against the backdrop of the global deficit and ramp-up of Indonesian stainless output.

The post The latest ASX shares to be hit by a broker downgrade appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Woolworths (ASX:WOW) share price history: What caused the biggest ups and downs?
Why the Qantas (ASX:QAN) share price has beaten the ASX 200 in the last year
ASX 200 midday update: Harvey Norman’s record profit, PointsBet posts large loss

5 things to watch on the ASX 200 on Tuesday

ASX 200 rises, Altium sinks, Fortescue climbs

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!