Leading brokers name 3 ASX shares to sell

National Australia Bank Ltd (ASX:NAB) shares are one of three that leading brokers have named as sells this month…

| More on:
a woman

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

With many brokers taking a well-deserved break after a busy year, it has been a little quiet on the broker note front this week.

To fill the void, I have picked out three broker sell recommendations that have caught my eye this month.

Here's why leading brokers think investors should be selling these ASX shares:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of UBS, its analysts have retained their sell rating and $8.00 price target on this iron ore producer's shares. The note reveals that the broker feels that Fortescue's shares have got ahead of themselves this year. Furthermore, the broker is expecting iron ore supply to normalise in the near term. Combined, it fears this could weigh heavily on its share price in 2020. The Fortescue share price last traded at $10.91.

National Australia Bank Ltd (ASX: NAB)

Analysts at Morgan Stanley have retained their underweight rating and trimmed the price target on this banking giant's shares to $24.00. According to the note, the broker believes that NAB could be forced to raise ~$3.5 billion of capital in the near future to fund its transformation plans, strengthen its balance sheet, and cover potential penalties from legal or regulatory action. It suspects this could also force the bank to cut its dividend further. The NAB share price was last trading at $24.86.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted the price target on this wine company's shares to $15.30. According to the note, recent industry data shows that the company's sales in the US wine market are softening. The broker also points out that wine export data is unfavourable. It notes that both Australian alcohol exports and Chinese wine import data continue to deteriorate and are turning negative on a two-year CAGR basis. The Treasury Wine share price was changing hands at $16.65 on Tuesday.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. 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.

More on Share Market News

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

A businessman compares the growth trajectory of property versus shares.
Share Market News

How ASX shares vs. property performed in October

The national home value rose for the 21st consecutive month while the ASX 200 dipped.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »