MENU

Leading brokers name 3 ASX shares to sell today

Yesterday I took a look at a few shares which leading brokers had slapped buy ratings on this week.

Today I thought I would look at the ones they think investors should be avoiding. They are listed below:

Beach Energy Ltd (ASX: BPT)

According to a research note out of Macquarie, its analysts have reiterated their underperform rating and 60 cents price target on the energy company. Macquarie downgraded its earnings expectations for Beach following operational issues, an oversupply of LNG, and lower-than-expected oil prices during the quarter. As I’m quite bearish on oil prices moving forward, I would have to agree with Macquarie on this one. Furthermore, I feel there are far better options in the resources sector that offer a greater risk/reward.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Citi have reiterated their sell rating and $4.00 price target on the telco giant. According to the note, Citi expects Telstra to cut its dividend to 25 cents from FY 2018. However, the broker doesn’t believe this is enough and has suggested that the company cut its dividend deeper in order to direct funds to either share buybacks or earnings accretive acquisitions. Whilst I feel that Citi makes some valid points, I do believe it is overlooking the considerable cost savings that the company could make over the coming years. For this reason I wouldn’t be in a rush to sell, though it is certainly worth acknowledging that it is a higher risk investment than in previous years.

Treasury Wine Estates Ltd (ASX: TWE)

Yesterday Morgan Stanley reiterated its overweight rating and $14.00 price target on Treasury Wine. One broker that doesn’t agree with this view is Citi. According to a note released this morning, the investment bank has reiterated its sell rating and $10.50 price target. Citi believes its earnings growth could pause due to a weaker vintage and higher administration costs. While it expects things to improve from FY 2019 onwards, the broker appears to believe investors should stay clear of the wine company until then. As I’m very bullish on its long-term growth prospects, I would be inclined to side with Morgan Stanley and continue to hold onto its shares.

Finally, if you're unsure on Treasury Wine, then check out these growth shares which I think are buys today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Telstra 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 Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.