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 they are bearish on them:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating and lowly $17.60 price target on this payments company’s shares. The broker notes the independent auditor’s report into anti-money laundering compliance found historical non-compliance. Though acknowledges that it is now compliant. Overall, the broker believes the report highlights the regulatory uncertainty which the company is facing. It continues to believe this uncertainty could weigh on its shares in the near term. The Afterpay share price is down slightly to $32.49 today.
Bank of Queensland Limited (ASX: BOQ)
A note out of Morgans reveals that its analysts have retained their reduce rating and trimmed the price target on this regional bank’s shares to $7.20. According to the note, the broker was not surprised that the bank launched a capital raising this week. It has previously highlighted the need for increased investment. It also previously suggested there could be a need for additional funds for potential upcoming remediation. And finally, Morgans suspects that another dividend cut could be coming and has forecast a dividend of 52 cents per share in FY 2020. This compares to FY 2019’s 65 cents per share payout. On Tuesday the bank’s shares are down 6% to $8.12.
Newcrest Mining Limited (ASX: NCM)
Analysts at Goldman Sachs have retained their sell rating and cut the price target on this gold miner’s shares to $25.50. According to the note, Goldman Sachs visited Newcrest’s Cadia and Lihir mines last week. And while these assets are performing in line with expectations, it isn’t enough for a change of rating. Goldman notes that Newcrest’s overall production and returns are declining and its free cash flow yield is limited. The gold miner’s shares are changing hands at $30.43 on Tuesday.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
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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 AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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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