On Wednesday I looked at three shares that had found favour with brokers and been given buy ratings.
Today I thought I would look at a few shares that are out of favour and have been given sell ratings. Here are three sell-rated shares that caught my eye:
ASX Ltd (ASX: ASX)
According to a note out of Deutsche Bank, its analysts have retained their sell rating and $58.50 price target on the Australian share market operator’s shares. Although the broker notes that ASX Ltd has had a strong start to the new financial year with value and volume both up, it hasn’t seen enough to make a change to its recommendation. While I do like ASX Ltd and its monopoly-like business, I would prefer to get in at a lower price.
Telstra Corporation Ltd (ASX: TLS)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $2.80 price target on this telco giant’s shares after its guidance update. While the broker doesn’t believe that today’s update should have any bearing on Telstra’s intrinsic value, it remains negative on the company due to the challenging trading conditions it faces. While I wouldn’t be a seller if I owned its shares, I won’t be deciding whether to invest until it clarifies what its dividend plans are.
Woolworths Group Ltd (ASX: WOW)
Another note out of Macquarie reveals that the broker is bearish on this retail conglomerate. It has retained its underperform rating and $27.91 price target on its shares due to news that Woolworths may consider divesting its gaming, hotel and liquor businesses into a separate entity. The broker doesn’t see a financial or strategic reason for such a move. I agree with this view and would suggest investors consider staying clear of the company until its shares trade at a more attractive level.
Finally, here are three buy-rated shares that I think are well worth considering this month.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of ASX 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 Scott Phillips.