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

A man in a hospital bed on a drip gives a thumbs up sign.
Healthcare Shares

Macquarie predicts 86% upside for this ASX 200 healthcare stock

Shares could almost double over the next 12 months, according to the broker.

Read more »

A man analyses stockmarket graph on his computer.
52-Week Lows

The Guzman Y Gomez share price hit a 52-week low this week. Is it a buy?

Has this stock lost its spice or is it set to rebound?

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Broker Notes

Should you buy Qantas shares before reporting season? Here's what Macquarie recommends

We look at Macquarie’s expectations for the surging Qantas share price in FY 2026.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Share Market News

5 things to watch on the ASX 200 on Thursday

Here's what to expect on the local market today.

Read more »

A set of scales with a bag of money balanced against a timer, indicating growth versus value shares
Opinions

Which ASX sector offers the best value heading into earnings season?

I think one sector is particularly compelling.

Read more »

Green stock market graph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was one for the history books today.

Read more »

Person holding a blue chip.
Blue Chip Shares

4 ASX 200 blue-chip shares to hold but not buy: experts

These blue-chips are worth holding if you already own them, but are too expensive for new investors to buy.

Read more »

A bricklayer peeps over the top of a brick wall he is laying with a level measuring tool on top.
Broker Notes

Are Brickworks shares a buy, hold or sell ahead of earnings season?

Brokers have been weighing property gains, US headwinds, and merger impacts to form a view.

Read more »