7 ASX shares downgraded by brokers this week

Brokers reduced their ratings on South32, JB Hi-Fi, Whitehaven Coal, and other shares.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.05% to 8,717.2 points on Thursday. 

As the new financial year begins, brokers are running their rulers over several ASX shares and adjusting their ratings and 12-month price targets. 

Let's take a look at some downgrades from the experts this week. 

A frustrated businesswoman tries to figure out the numbers, indicating poor earnings results or share price movementon the ASX

Image source: Getty Images

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $76,45, down 2.2% today and down 32% over 12 months. 

UBS downgraded the ASX consumer discretionary share to a hold rating on Tuesday. 

The broker shaved its 12-month price target from $85 to $83.

This suggest a potential 8% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $11.80, up 2.1% today and up 51% over 12 months. 

UBS downgraded the ASX 200 gold share to a hold rating on Tuesday.

The broker cut its 12-month price target from $14 to $12.60.

This implies a potential 7% upside ahead.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is $7.50, up 0.2% on Thursday and up 34% over 12 months. 

UBS downgraded the ASX coal share to a hold rating on Tuesday. 

The broker lowered its 12-month price target from $9.10 to $8.70.

This indicates possible capital gains of 16% over the next year. 

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 90 cents, down 1.4% today and down 44% over 12 months. 

UBS downgraded Judo shares to a hold rating on Monday.

The broker has a 12-month target price of $1.05, indicating a potential 17% upside over FY27. 

Data#3 Ltd (ASX: DTL)

The Data#3 share price is $9.54, up 1.2% today and 25% higher over 12 months. 

Morgan Stanley downgraded the ASX tech share to a hold rating with a $10 target on Wednesday. 

This suggests potential capital growth of 5% over the next year. 

South32 Ltd (ASX: S32)

The South32 share price is $4.23, down 1.2% today and up 36% over 12 months. 

Morgans downgraded its rating on the ASX 200 mining share from accumulate to hold.

The broker cut its price target from $5 to $4.50, suggesting a potential 6% upside ahead.

Morgans said: 

S32 has agreed to sell its entire ali business for total consideration of US$5.6bn (US$4.1bn upfront), and transfer of US$1.2bn closure/rehab liabilities.

Our view on S32's aluminium sale is genuinely mixed. It leaves S32 a simpler and, in important respects, a better business, but also a smaller and less valuable one.

We reduce our valuation on S32's ali assets to in line with the agreed Alcoa deal… As a result we update our rating to HOLD (from Accumulate).

Turaco Gold Ltd (ASX: TCG)

The Turaco Gold share price is 48 cents, up 6.7% today and up 4% over 12 months. 

Morgans downgraded the ASX gold share from a buy to a speculative buy rating this week.

The broker slashed its 12-month price target from $2.19 to $1.18.

This still implies a potential 145% upside ahead.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Data#3. 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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