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Leading brokers cut their target prices for these 5 ASX shares

Price cut

We are smack bang in the middle of reporting season and brokers have been busy with adjusting their ASX share target prices.

These 5 ASX shares have all had their price targets cut by leading brokers this week.

Challenger Limited (ASX: CGF)

Morgan Stanley has cut their price target for Challenger by 4.5% to $7.00. This follows Challenger’s poor half-year announcement that had net profits falling by 96.9%.

The Challenger share price is down 16% for the year, but this price cut still represents a 5% discount to today’s share price.

Super Retail Group Ltd (ASX: SUL)

Citi has cut the Super Retail Group price target by 4.3% to $9.00. This also follows the company’s provisional 1H19 update which highlighted a rise in total sales by 6% to $1.4bn and EBITDA up 11% to $166.2m.

The company announced its half-year profit results today on February 14. These results were in-line with the company’s provisional update.

Super Retail managed to maintain its dividend despite a payroll scandal that cost the company more than $40 million from its half-year profit.

Pact Group Holdings Ltd (ASX: PGH)

Deutsche Bank has cut the Pact Group target price by 11% to $5.00.  On Tuesday, the company announced $310m to $340m in impairment charges due to higher input costs and weaker demand conditions.

The Pact Group share price has fallen steadily since Tuesday and closed 7.72% lower at $2.99 today

Aristocrat Leisure Limited (ASX: ALL)

Macquarie has slashed the Aristocrat Leisure target price by 9.2% to $27.25. This does not follow any significant news that has come out of the company besides a recent announcement out of the U.S Justice Department citing all internet gambling is illegal.

The Aristocrat Leisure Limited share price currently trades at$25.01, up 14% year to date.

Australian Agricultural Company Ltd (ASX: AAC)

Bell Potter has cut the Australian Agricultural Company target price by 5.5% to $1.37. This follows an announcement made on February 11 confirming that heavy rain and severe flooding throughout northwestern Queensland had severely impacted four of AACo’s 21 properties.

Management has cited that credible assessment of the impact on livestock and infrastructure will only be possible once the flood waters have started to recede. They expect the impact to be material for FY19 earnings.

The AACo share price closed is down almost 14% so far in 2019.

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*Returns as of February 15th 2021

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia owns shares of Super Retail Group 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.

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