Brokers slapped these 3 ASX stocks with a sell recommendation

The bulls may be in charge of the market but these three ASX stocks have found themselves on brokers' "naughty list".

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Nothing can keep the bulls down! Despite a weak start to the trading day, the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) index has managed to claw back from the red to finish at a fresh 11-year high.

The top 200 stock benchmark finished just a tat above breakeven on Friday with the Saracen Mineral Holdings Limited (ASX: SAR) share price and Nearmap Ltd (ASX: NEA) share price leading the charge.

But the cheer isn't felt by all stocks and three in particular have become the latest to fall under a "sell" rating by brokers.

a woman

Perpetual on the "naughty list"

The first is the Perpetual Limited (ASX: PPT) share price, which tumbled 3.1% to $40.97 in the closing minutes of trade after Bell Potter downgraded the stock to "sell" from "hold" after the fund manager posted its March quarterly update.

"PPT experienced its worst quarterly net-flows in Perpetual Investments since calendar 2011 at -$1.9 billion. We have estimates for continued outflows at around -$300m a quarter for the foreseeable future," said Bell Potter.

"We believe the risk to our revised Sell recommendation is that PPT utilises its acquisition currency and relatively high PE to build scale in its business via a bolt-on acquisition. This is something the CEO flagged as a possible outcome at the recent February 1H19 result release."

Bell Potter has a 12-month price target of $35.17 on the stock.

Down a hole

Meanwhile, Morgan Stanley has reiterated its "underweight" recommendation on the Northern Star Resources Ltd (ASX: NSR) share price after the gold miner issued its latest quarterly production report.

The broker said that the quarterly update was weak on both the production and costs fronts with the miner's problematic Pogo mine continuing to give grief.

Northern Star produced 186,000 ounces of gold, which was below Morgan Stanley's forecast of 226,000 ounces.

"YTD [year-to-date] run rate of 783koz, well below guidance 850-900koz, MSe 853koz. The big miss was at Pogo with 33koz produced (MSe 69koz, DecQ 50koz)," said the broker, which as a $6.60 price target on the stock.

Sinking like cement

Another stock that's in the bad books is the Wagners Holding Company Ltd (ASX: WGN) share price. Wilsons continues to rate the stock a "sell" after the building materials company issued a profit warning as it fights a legal battle with Boral Limited (ASX: BLD).

"Wagners downgraded its FY19e EBIT guidance range 27.4% ($10.0m) to $25-28m, following its inability to resolve the Cement Supply Agreement with Boral, its largest cement customer," said the broker.

Motley Fool contributor Brendon Lau owns shares of Boral Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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.

More on Share Fallers

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today

These shares are ending the week in the red. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why 29Metals, DGL, Fletcher Building, and Newmont shares are falling today

These shares are out of form and sinking on Thursday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Boss Energy, Telix, Woodside, and Yancoal shares are falling today

These shares are having a tough time on hump day. What's going on?

Read more »

Young businessman lost in depression on stairs.
Share Fallers

What's going on with the DroneShield share price?

The drone operator's share price outperformed in March, but has now crashed again.

Read more »

A young man clasps his hand to his head with a pained expression on his face and a laptop in front of him.
Share Fallers

Why Clarity, Qantas, Universal Store, and Westpac shares are falling today

Let's see why these shares are missing out on the market's move higher today.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why A2 Milk, Metallium, Northern Star, and St Barbara shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A young couple stands next to a real estate agent in an empty apartment they are inspecting.
Real Estate Shares

Mirvac shares sink to their lowest level since 2015. Is this ASX property giant back on the radar?

Multi-year lows put Mirvac shares back on investors’ watchlists today.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Orora, Select Harvests, Tamboran, and WiseTech shares are sinking today

These shares are under pressure on Thursday. What's going on?

Read more »