We might be emerging from one of the best reporting seasons in history, but this hasn't brokers from downgrading ASX shares.
The S&P/ASX 200 Index (Index:^AXJO) gained 0.5% over the past month as several ASX shares posted record earnings and dividends.
But it isn't all good news for the Healius Ltd (ASX: HLS) share price. Even after the medical services group posted strong growth for FY21, Goldman Sachs downgraded the Healius share price to "neutral" from "buy".
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ASX shares downgraded for lack of new surprises
This is largely because the broker reckons management has run out of rabbits to pull out its hat! Delivering positive surprises is key to driving outperformance for the Healius share price.
"Commentary that the base pathology business remains 'slightly up' in FY22 to date is encouraging, but is likely no longer sufficient to generate positive surprise," said Goldman.
"Meanwhile, the Imaging business is currently held back by ongoing lockdowns but also continues to lag peers."
How much is the Healius share price worth?
Sure, increased PCR testing for COVID-19 will bolster the company's bottom line, but that's arguably priced into the Healius share price, which is up around 65% since the start of the pandemic.
What's more, management has ruled out further corporate restructure in the near-term.
Goldman's 12-month price target on the Healius share price is $4.90 a share.
Too much of a good thing
Another to suffer a broker downgrade is the Mincor Resources NL (ASX: MCR) share price. The analysts at Macquarie Group Ltd (ASX: MQG) lowered its rating on the Mincor share price to "neutral" from "outperform".
The move comes even after the nickel miner announced two impressive exploration results at Golden Mile and Location 1.
"We believe Golden Mile has the potential to add tonnes to our five-year production scenario with Location 1 requiring more drilling to better define its potential," said Macquarie.
"MCR's share price is up ~40% since the beginning of July [vs index ASX 200 up 3%], equivalent to an increase in market capitalisation of +$170m.
"We believe this move largely captures the potential of the discoveries at this stage."
Downgraded ASX shares despite positive nickel outlook
Mincor's production ramp-up and costs assumptions are the key risks to the broker's forecasts for the miner.
Macquarie's 12-month price target on the Mincor share price is $1.40 a share.
But this doesn't mean the broker is turning bearish on nickel. If anything, the supply of the metal remained tight with only 273,000 tonnes of ferronickel imported to China in July.
This is against the backdrop of the global deficit and ramp-up of Indonesian stainless output.
