Top brokers have named Fortescue Metals Group Limited (ASX:FMG) and these ASX shares as sells for next week. Here’s why they are bearish…
The post Top brokers name 3 ASX shares to sell next week appeared first on 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:
ASX Ltd (ASX: ASX)
According to a note out of Morgans, its analysts have retained their reduce rating and lowered the price target on this stock exchange operator’s shares to $74.82. Morgans made the move following the release of the company’s activity statement for the month of August. The broker felt that ASX’s update was a touch weak, particularly in respect to futures. In light of this, it has reduced its earnings estimates and its valuation accordingly. The ASX share price was changing hands for $82.76 on Friday.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Morgan Stanley reveals that its analysts have downgraded this iron ore producer’s shares to an underweight rating with an improved price target of $14.50. Although the broker has upgraded its iron ore price forecasts to reflect strong steel production in China, it isn’t enough to stop it downgrading its shares. Its analysts believe Fortescue’s valuation is looking stretched at the current level and the risk/reward on offer isn’t sufficient. The Fortescue share price ended the week at $17.34.
Mineral Resources Limited (ASX: MIN)
Analysts at Morgan Stanley have also downgraded this mining and mining services company’s shares to an underweight rating with an improved price target of $23.50. As with Fortescue above, the broker made the move on valuation grounds after some exceptionally strong gains in 2020 for the Mineral Resources share price. The company’s shares are up over 64% year to date thanks to its exposure to the rising iron ore price. This left them trading at $27.15 at Friday’s close.
Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks 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.*
In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.
Find out the names of our 3 Post COVID Stocks – For FREE!
*Returns as of 6/8/2020
More reading
- Are higher P/E ratios really here to stay?
- 3 top ASX dividend shares I would buy next week
- A definitive guide to September ASX share trends
- 2 ASX shares I would buy again and one I regret
- Why the Rio Tinto share price is outperforming its peers
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.
