Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Bega Cheese Ltd (ASX: BGA)

Analysts at Goldman Sachs have downgraded this diversified food company’s shares to a sell rating with a $5.15 price target. The broker made the move largely on valuation grounds. It notes that Bega’s shares are trading in line with its valuation whereas its coverage average offers 33% upside. Goldman also has concerns about the headwinds facing the Australian Dairy Industry and the potential impact on future earnings. The Bega Cheese share price was trading at $5.05 on Friday.

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgans, its analysts have retained their reduce rating and $77.00 price target on this banking giant’s shares. While the broker expects a rising interest rate environment to generally be supportive of major bank margins in net terms, it isn’t convinced that such an environment will be a walk in the park for the banks. Morgans highlights that higher interest rates will likely place downward pressure on asset prices and credit growth, as well as increasing the risk of asset quality deterioration. Outside this, the broker feels the bank’s shares are overvalued at the current level. The CBA share price ended the week at $103.88.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target to $15.00. This follows the release of a quarterly update which revealed slightly higher than expected shipments and pricing that was largely in line with forecasts. However, this isn’t enough for a change of rating. Credit Suisse continues to struggle to justify the company’s valuation in comparison to peers and believes the risks are to the downside. The Fortescue share price was fetching $21.63 at Friday’s close.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Fortescue share price in May?
• Fortescue share price lower after bearish broker note warns of dividend cuts
• Can the CBA share price maintain its premium to the other ASX banks?
• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro 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 no position in any of the stocks mentioned. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

According to a note out of Morgan Stanley, its analysts have resumed coverage on this pizza chain operator with an overweight rating and $100.00 price target. The broker believes investors should look beyond short term headwinds such as lockdown boosts a year earlier and food inflation and focus on its long term growth potential. This is being underpinned by the company’s plan to double its store footprint globally. The Domino’s share price ended the week at $75.31.

Life360 Inc (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating but cut their price target on this location technology company’s shares to $8.25. Bell Potter highlights that Life360 performed ahead of its expectations during the first quarter, with paying circles, core annual monthly revenue, global monthly active users, and core revenue all growing quicker than its estimates. And while the broker was disappointed with the  company’s cash flow, it believes this will materially improve in Q2 and Q3 and then be positive in Q4. The Life360 share price was fetching $4.03 at the end of the week.

Pilbara Minerals Ltd (ASX: PLS)

Analysts at Citi have retained their buy rating and $3.60 price target on this lithium miner’s shares. This follows the release of the company’s third quarter update, which revealed another jump in lithium prices and expectations for further increases. And while the broker isn’t convinced Pilbara Minerals will achieve its production growth target this year, it isn’t enough to dampen its bullish view. The Pilbara Minerals share price ended the week at $2.85.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Why analysts say investors should buy these beaten down ASX shares
• These were the worst performing ASX 200 shares last week
• The Domino’s share price just hit a 52-week low. Is it time to tuck into some?
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here’s why ASX 200 tech shares are having such a stellar end to the week

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. 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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The Fortescue Metals Group Limited (ASX: FMG) share price went up this week after the ASX mining company released its quarterly update.

In the three months to 31 March 2022, Fortescue upgraded how much iron ore it is expecting to ship in FY22.

Highlights from the third-quarter update

The miner shipped 46.5 million tonnes for the quarter, which was 10% higher than the third quarter of FY21. This contributed to record shipments for the nine months to 31 March 2022 of 139.5mt.

The business increased its FY22 guidance for iron ore shipments to 185mt to 188mt, up from a range of 180mt to 185mt.

Not only did the business ship more, but it saw average revenue of US$100 per dry metric tonne, representing revenue realisation of 70% of the Platts 62 CFR Index for the quarter, up from 68% in the second quarter of FY22.

However, costs are also increasing. The quarterly C1 cost was US$15.78 per wmt, up 3% from the previous quarter. The guidance for the FY22 C1 cost has been revised to a range of US$15.75 to US$16 per wmt, up from US$15 to US$15.50 per wmt.

The Iron Bridge project capital estimate has also been increased to between US$3.6 billion to US$3.8 billion, up from US$3.3 billion to US$3.5 billion. The company blamed COVID-19 related labour constraints, a tight labour market, supply chain issues, higher construction costs, as well as higher logistics and shipping costs, which have worsened due to recent lockdowns in China.

Is the Fortescue share price an opportunity?

According to reporting by the Australian Financial Review the broker UBS has increased its price target for the Fortescue share price by over 9% to $18.70. However, the rating is still neutral on the ASX mining share.

The AFR quoted UBS, which said:

Current high spot prices and potential for China stimulus to keep prices higher for longer should support shareholder returns, but over the long term we remain cautious on iron ore. China’s stimulus response to current COVID conditions remains an upside risk to our forecast.

However, there are other brokers that are even less optimistic about the Fortescue share price.

Credit Suisse has a price target of $15. That implies a potential fall of around 30% over the next year. It thinks that it is valued too expensively compared to other mining shares. However, this price target was increased to $15 from $14.

On Credit Suisse numbers, the FY22 Fortescue grossed-up dividend yield is 12% and then 8.7% in FY23.

The post What’s the outlook for the Fortescue share price in May? appeared first on The Motley Fool Australia.

More reading

• Fortescue share price lower after bearish broker note warns of dividend cuts
• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?
• 5 things to watch on the ASX 200 on Friday
• Why AMP, Fortescue, Pilbara Minerals, and Sandfire shares are racing higher
• ASX 200 midday update: Coles, Fortescue, and Pilbara Minerals release quarterly updates

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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 no position in any of the stocks mentioned. 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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With only two months of the 2022 financial year remaining, we asked our Foolish contributors to compile a list of some of the ASX shares experts are saying to buy in May. Here is what the team came up with:

Tristan Harrison: Airtasker Ltd (ASX: ART)

The Airtasker share price has fallen by around 50% over the last half-year, but the company continues to grow its revenue.

In the FY22 third quarter, Airtasker’s revenue surged by 21.2% to $8.6 million, with a positive operating cash flow of $1 million. Gross marketplace volume for the United Kingdom rose by 138% year on year, while the United States posted task growth of 90% quarter on quarter.

Airtasker co-founder and CEO Tim Fung was “super pleased” with this update, despite the impacts of rainfall and flooding in Australia. The business is also currently investing in new segments of the local services economy in Australia.

Morgans rates Airtasker shares as a buy, with a price target of $1.15. This represents over 140% upside to Friday’s closing price of 47 cents.

Motley Fool contributor Tristan Harrison does not own shares of Airtasker Ltd.

Bernd Struben: Aussie Broadband Ltd (ASX: ABB)

Telecommunications company Aussie Broadband has been growing fast. It is now the fifth-largest NBN provider in Australia, with more than 540,000 active broadband services. Aside from its internet services, the company’s other product lines include VOIP (voice over internet protocol), mobile plans, and entertainment bundles.

Aussie Broadband’s half-year earnings results for the six months through to 31 December were strong. Highlights included a revenue leap of 46% year on year alongside a 45% increase in total broadband services.

The Aussie Broadband share price has surged by around 17% so far in 2022, giving it a market capitalisation of $1.33 billion. The company is a relative newcomer to the ASX, having listed on 16 October 2020.

Motley Fool contributor Bernd Struben does not own shares of Aussie Broadband Ltd.

Brooke Cooper: Telstra Corporation Ltd (ASX: TLS)

The Telstra share price hasn’t had the best start to 2022. It’s flopped 3.35% year to date and closed Friday’s session at $4.04.

But, according to Telstra, the company is in for brighter days ahead, and some brokers agree.

The S&P/ASX 200 Index (ASX: XJO) telco has finally pushed past the challenging NBN rollout. It’s also gearing up to kickstart its T25 strategy – which follows on from what Andy Penn called the company’s “ambitious” and “transformational” T22 strategy.

One of T25’s aims is to further support dividends through a number of cost-cutting and value-adding initiatives.

Brokers Credit Suisse, Morgans, Ord Minnett, and Morgan Stanley are all tipping the Telstra share price to reach at least $4.50 in the next 12 months.

Motley Fool contributor Brooke Cooper does not own shares of Telstra Corporation Ltd.

Sebastian Bowen: BetaShares Global Banks ETF (ASX: BNKS)

Inflation has now become a significant concern for many investors. That’s why this ASX exchange-traded fund (ETF) could be worth looking at in May.

Bank shares are often touted as inflation resistant. This is largely thanks to their ability to rapidly change the interest rates they charge and receive for their services.

This ETF from provider BetaSahres holds a collection (59 at the last count) of the world’s largest bank shares. These come from countries such as the United States, Canada, Britain, China, Japan, and others.

In a world of rising inflation, BNKS could be a worthwhile portfolio addition. This ETF also pays a meaty dividend distribution which, on Friday’s closing price of $6.33, was worth a yield of around 4%.

Motley Fool contributor Sebastian Bowen does not own the BetaShares Global Banks ETF.

James Mickleboro: Goodman Group (ASX: GMG)

Goodman Group could be a top option for investors to consider in May. It is one of the world’s leading integrated commercial and industrial property companies, with a portfolio of high-quality properties across the globe. These properties have exposure to growth markets such as e-commerce and logistics and are, unsurprisingly, in high demand. This has underpinned a sky-high occupancy rate and growing rental income for the company.

Pleasingly, with a material development pipeline and demand unabating, Goodman has been tipped to continue its strong growth in the coming years. For example, analysts at Citi now “forecast c. 23% EPS growth in FY22 and c. 19% EPS CAGR from FY21-FY24.”

The broker also sees value in the Goodman share price with its buy rating and price target of $29.50. Goodman shares closed Friday’s session 2.09% higher at $23.98.

Motley Fool contributor James Mickleboro does not own shares of Goodman Group.

The post Best ASX shares to buy in May 2022 appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares with great yields to buy now
• What’s dragging the Telstra share price lower today?
• 5 ASX ETFs to combat inflation: fund manager
• Shoes, shopping, reno: 3 ASX shares experts are buying now
• Which ASX 200 shares have historically performed well during rising inflation?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited and BetaShares Global Banks ETF – Currency Hedged. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. 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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