Top brokers just downgraded these ASX 200 shares

Is the tide turning for these names?

| 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

ASX 200 shares are off to a good start to the year, with the benchmark S&P/ASX 200 index (ASX: XJO) lifting around 3%.

Meanwhile, The Australian is reporting that top brokers have downgraded their ratings on Evolution Mining Ltd (ASX: EVN), Paladin Energy Ltd (ASX: PDN), and Goodman Group (ASX: GMG).

All of these stocks have done pretty well in recent months, so why the sudden change? Let's dive in and see.

Three cute kids with mixed expressions poke their heads out from the back of a kombi.

Image source: Getty Images

Brokers downgrade ASX 200 shares

Evolution Mining's share price has climbed more than 80% over the past year and is up 17% this year alone.

The ASX 200 share hit new highs on Wednesday after the gold miner posted its quarterly report for the three months ended December 2024.

Despite a reasonably strong quarter, Citi analysts have downgraded Evolution to a hold. But in an odd move, Citi raised its price target on the mining stock slightly to $5.80 apiece.

As The Australian reports, Citi analyst Kate McCutcheon likes its copper assets and says the company has met investor expectations in the past six months.

But Citi views Evolution as pricey and "would like to revisit our call into a pullback".

In addition, Macquarie Equities has also moved Evolution to a hold rating, setting a price target of $5.50. Meanwhile, Argonaut Securities downgraded the miner to hold with a price target of $6.00.

This comes as gold trades at US$2,750 per ounce, not far off its all-time high of US$2.785 per ounce.

Moving along, the second ASX 200 share to face a downgrade is ASX property giant Goodman Group.

Investment bank JP Morgan cut its rating on the property stock to a hold with a price target of $40. From Goodman's closing price of $38.36 on Wednesday, this is a 4.2% upside potential.

JP Morgan is at odds with its broker colleagues, however. According to CommSec, of the eight analysts covering the stock, only JP Morgan rates the ASX 200 share a sell. There are five buys and two holds, respectively.

Paladin Energy rated hold

Uranium producer Paladin Energy has also been downgraded to a hold this week, with broker UBS revising its rating down.

This follows a 32% rally in its share price since November, as reported by The Australian, along with a "conservative" outlook on uranium.

The broker lifted its FY25 production forecast by 6%, reflecting higher output assumptions.

However, it also cited uncertainty around the "near-term price direction" of uranium as a key reason for its revised outlook.

While we are generally positive the long-term uranium thematic, we are less certain about near-term price direction and catalysts to have prices run higher, albeit given the closed nature of the uranium market we concede it is harder than most commodities to call near-term and with limited short-term indicators.

UBS set a price target of $10 piece on the ASX 200 share, nearly 9% upside potential from its closing price on Wednesday.

Foolish takeout

These ASX 200 shares have been downgraded to 'hold' ratings from top brokers this week.

Whilst expert opinions are valuable, it's important to remember they are just that — opinions. Keeping a long-term investment view is critical.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A woman with red lipstick and tattoos pulls a face as though the situation is not looking good.
Broker Notes

Buy, hold, sell: Megaport, Bendigo Bank, BHP shares

Experts have revised their ratings and 12-month price targets on 3 ASX 200 shares.

Read more »

A bored woman looking at her computer, it's bad news.
Broker Notes

BHP, CBA, and Westpac shares are sells this week: experts

Let's see why experts are bearish on these shares.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Broker Notes

7 ASX shares set to soar 30% to 90% in 12 months: experts

Analysts say these ASX shares have great capital growth prospects.

Read more »

Three excited business people cheer around a laptop in the office
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Many cars travel on a busy six lane road way with other cars in the background travelling in the opposite direction.
Broker Notes

4 reasons to buy Transurban shares today

A leading analyst expects more outperformance from Transurban shares.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

These ASX 200 shares could rise around 50% to 60%

Looking for big returns? These shares could be worth considering according to analysts.

Read more »

A man with a wide, eager smile on his face holds up three fingers.
Broker Notes

Brokers name 3 ASX shares to buy right now

Let's find out which shares top brokers are feeling bullish about this week.

Read more »

A woman wearing green flexes her bicep.
Broker Notes

7 ASX 200 shares with strengthened buy ratings this week

Brokers have indicated continuing confidence in BHP, AMP, IAG, Megaport, and others. 

Read more »