MENU

Leading brokers name 3 ASX shares to sell

Earlier in the week I had a look at a number of shares which have been labelled as buys by leading brokers.

Today I thought I would take a look at three shares which have unfortunately been labelled as sells. Here they are:

Vocus Group Ltd (ASX: VOC)

According to a note out of the Macquarie equities desk, its analysts have downgraded the telco company to an underperform rating with a $3.05 price target. The broker appears to be concerned by the intense competition in the industry and its current valuation following a strong run higher since September. While I wouldn’t necessarily be in a rush to sell, I wouldn’t be a buyer of Vocus shares right now either. If they were close to $2.50 I would be interested.

Whitehaven Coal Ltd (ASX: WHC)

A note out of Citi reveals that its analysts have downgraded the coal miner to a sell rating from neutral and placed a $4.20 price target on its shares. Citi made the move after Whitehaven Coal fell short of the broker’s December quarter production estimates yesterday. The coal miner also downgraded its full-year production guidance from the range of 22Mt to 23Mt to a new range of 20.5Mt to 21.0Mt due to issues at its key Narrabri operation. Its shares have fallen since the release and do look a little more attractive now, but I wouldn’t be a buyer unless coal prices increased strongly over the coming months.

Woodside Petroleum Limited (ASX: WPL)

Analysts at Citi have also given this energy producer a sell rating following the release of its latest production update. The broker has, however, lifted it price target slightly on Woodside’s shares to $26.86. Although the company beat the broker’s estimates, it hasn’t been enough to warrant a change in recommendation. Citi is of the opinion that the current share price incorporates bullish oil prices of close to US$80 per barrel. I would have to agree with Citi on this one as well and would rather gain exposure to the energy sector through an investment in BHP Billiton Limited (ASX: BHP).

Whilst those shares may be classed as sells, I think these top quality shares ought to be classed as strong buys today.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Vocus Communications 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!