5 ASX shares downgraded by brokers this week

Brokers reduced their ratings on Endeavour, APA Group, Guzman y Gomez, and other shares. 

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S&P/ASX 200 Index (ASX: XJO) shares are 0.5% higher at 9,270.1 points on Thursday.

Brokers have reduced their ratings on numerous ASX shares this week.

Let's take a look at a few of them.

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.

Image source: Getty Images

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is $3.44, up 0.2% today and down 15% over 12 months. 

Morgans downgraded the ASX 200 consumer staples share from hold to trim yesterday.

The broker lifted its 12-month price target from $2.80 to $3.20.

This implies a potential 7% downside ahead.

The changes came after Endeavour released its preliminary FY26 results.

Endeavour revealed a 1.3% lift year over year in group sales to $12,212 million.

However, the underlying net profit after tax (NPAT) fell to $363 million, down from $426 million in FY25.

Morgans commented:

EDV has provided some preliminary numbers for FY26 with underlying sales, EBIT and NPAT largely in line with expectations.

The company has, however, announced $372m ($311m after tax) in one-off costs (both cash and non-cash) relating to the write down of carrying values for assets as well as costs associated with the implementation of its strategy review.

Further details on EDV's performance are due to be released at its FY26 result on 24 August.

We decrease FY27F and FY28F underlying EBIT by 2%. Despite this, our target price increases to $3.20 (from $2.80) due to an uplift in peer valuation multiples.

We expect liquor demand to remain under pressure amid elevated interest rates, ongoing cost-of-living pressures and an uncertain macroeconomic backdrop.

The new management strategy also carries execution risk, in our view.

Firefly Metals Ltd (ASX: FFM)

The Firefly Metals share price is $1.93, up 5.2% today and up 87% over 12 months. 

MA Financial downgraded the copper and gold mining share to a hold rating on Tuesday.

The broker has a 12-month price target of $1.90.

This suggests a potential 55% upside ahead.

APA Group (ASX: APA)

The APA share price is $10.07, down 1% today and up 17% over 12 months. 

Jarden downgraded the ASX 200 utilities share to a hold rating on Wednesday.

The broker has a 12-month price target of $10.25.

This implies just a 2% upside ahead.

APA will announce its FY26 results on Thursday, 20 August.

Guzman y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is $24.88, down 0.3% today and down 12% over 12 months. 

UBS downgraded the ASX 200 consumer discretionary share to a hold rating yesterday.

The broker raised its 12-month price target from $24 to $28.

This indicates potential capital gains of 12% over the next year. 

The Mexican restaurant franchise group will announce its FY26 results on Friday, 21 August.

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources shares are $22.34, up 3.9% today and up 30% over 12 months. 

Morgans downgraded the ASX 200 gold share from buy to accumulate following the miner's June quarter report.

The broker lowered its 12-month price target from $26 to $24.

This suggests a potential 7% 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 positions in and has recommended Apa Group. The Motley Fool Australia has recommended Ma Financial Group. 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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