Here’s why brokers are bearish on these ASX shares…
The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia. –
Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were 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:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $70.71 price target on this pizza chain operator’s shares. The broker notes that Domino’s has signed an agreement to acquire the Domino’s Taiwan business. While it sees opportunities for the company to grow its store network materially in the country, it isn’t enough for a change of rating. With the acquisition expected to be just 2% earnings per share accretion, Credit Suisse continues to believe that its shares are overvalued. The Domino’s share price ended the week at $120.67.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Morgans have retained their reduce rating and $18.80 price target on this iron ore producer’s shares. According to the note, the broker believes there are early signs of moderation in respect to iron ore demand. Which could be bad news for the company, as it feels Fortescue is the most sensitive to falling iron ore prices. Overall, it feels its valuation is stretched and outweighs the attractiveness of its huge dividend yield. The Fortescue share price was fetching $22.42 at the end of last week.
InvoCare Limited (ASX: IVC)
A note out of Citi reveals that its analysts have downgraded this funerals company’s shares to a sell rating and cut the price target on them to $10.00. Citi notes that InvoCare has lost meaningful market share over the last five years despite spending almost half a billion on acquisitions and capital expenditure. It doesn’t appear to believe things will improve in the near term and has downgraded its earnings estimates meaningfully out to FY 2023. The InvoCare share price end the week at $11.39.
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 May 24th 2021
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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.