Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.
Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
AMP Limited (ASX: AMP)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this financial services company’s shares to $1.25. This follows the release of a third quarter update which revealed further outflows across its wealth management business. Macquarie believes that AMP’s medium term outlook is subdued and suspects that most divisions could struggle. The AMP share price ended the week at $1.35.
OZ Minerals Limited (ASX: OZL)
Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this copper producer’s shares to $12.55. The broker notes that OZ Minerals delivered a solid quarterly update last week and is forecasting lower costs for FY 2020. However, it still feels that its shares are expensive and could come under pressure if copper and gold prices soften. The OZ Minerals share price last traded at $15.81.
Zip Co Ltd (ASX: Z1P)
A note out of UBS reveals that its analysts have retained their sell rating and $5.50 price target on this payments company’s shares. The broker notes that Zip has announced the launch of its Tap & Zip product which allows users to make payments anywhere Visa is accepted. While it sees positives in this launch and notes that it opens up the company to a vastly greater number of retailers, it fears it could cannibalise higher margin transactions and weigh on new merchant additions. The Zip share price ended the week at $6.74.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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 ZIPCOLTD 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.
- 2 cheap ASX shares to buy right now – November 23, 2020 6:54pm
- Why the Mesoblast (ASX:MSB) share price rocketed 17% higher – November 23, 2020 4:24pm
- Here’s what happened at the Bubs Australia (ASX:BUB) AGM – November 23, 2020 4:07pm