The Motley Fool

Leading brokers name 3 ASX shares to sell today

On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.

Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why:

Cochlear Limited (ASX: COH)

According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and reduced the price target on this hearing solutions company’s shares to $166.00. Macquarie remains bearish on Cochlear due to the premium that its shares are currently trading at and the risk to its earnings from increased competition. Based on Macquarie’s forecasts, Cochlear’s shares are currently changing hands at ~43x full year earnings and ~39x FY 2020 earnings. Its analysts don’t believe its current growth profile justifies this premium. The Cochlear share price is up slightly to $197.88 today.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and NZ$13.15 (A$12.44) price target on this medical device company’s shares following the release of its full year results. According to the note, Fisher & Paykel Healthcare’s results were in line with its expectations, but this wasn’t enough for the broker to change its recommendation. Credit Suisse has previously suggested that its shares are expensive after a strong share price rally. The Fisher & Paykel Healthcare share price is currently trading almost 5% lower at $14.57.

Reject Shop Ltd (ASX: TRS)

Analysts at Goldman Sachs have downgraded this discount retailer’s shares to a sell rating and slashed the price target on them by 34% to a lowly $1.55. According to the note, the broker made the move in response to last week’s guidance downgrade. Goldman believes that earnings visibility remains weak and has concerns over the competitive landscape due to much larger-scale retailers continuing to pressure its gross margins. Unfortunately, the broker doesn’t expect these headwinds to ease over the near term. The Reject Shop share price is trading flat at $2.08.

Those may be the shares to sell, but here are two exciting shares that have just been rated as buys.

It’s hard to believe what these 2 ASX companies could mean to the digital payments revolution

The Motley Fool’s top tech analyst has spent years studying the huge global trend in which cash and traditional banks give way to new digital payments systems... And now he’s identified the two ASX companies he believes are poised to win this multi-trillion-dollar “war on cash.”

If he’s right, these two companies could power your portfolio for years to come. Heck, stock #1 is already up 204% in just the last two years...

While Stock #2 has climbed a stunning 954% just since 2015.

Yet we think the biggest returns look to be still ahead. In fact, our expert is convinced investors who act now could be in for 10X gains (or more). Which means you will want to get the details on these 2 ASX companies as soon as possible.

So click the link below right now! We’ll tell you how to pick up your free copy of this brand new report, “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution”…


James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.