Month: May 2022

The Newcrest Mining Ltd (ASX: NCM) share price moved in circles last month, registering nil gains for the period.

Indeed, it was a disappointing finish, considering its shares touched a near 52-week high of $28.96 on 19 April.

Investors clearly have mixed feelings when it comes to deciding the value of Newcrest shares in the current climate.

The gold miner released its quarterly production report to the ASX late last month, upgrading its FY22 guidance. However, this wasn’t enough to excite the market which led shareholders to sell off the company’s shares.

Over the past week, Newcrest shares have fallen more than 6%, despite finishing 0.6% higher to $26.88 on Friday.

What happened to Newcrest shares last month?

While the company provided a robust trading update, the price of gold recently cooled, causing Newcrest shares to sink.

The yellow metal dropped 1.45% over the month to close at US$1897.35 an ounce.

This is a stark contrast to when gold was fetching as high as US$2,070.13 an ounce on 8 March.

The Russian war in Ukraine caused a steep hike in gold prices in the short term. And with potential interest rate hikes around the corner, this is having a negative effect on the safe-haven asset.

Traditionally, rising interest rates drag down the price of precious metals and it appears investors are bracing for impact.

The major banks are predicting that the Reserve Bank of Australia could lift interest rates as high as 1.50% in 2022.

Annual inflation has soared to 5.1%, the worst in the last 20 years which has led to escalating living costs.

Investors will have to wait and see until tomorrow if the Reserve Bank of Australia starts lifting the cash rate.

If this does happen, it will be the first increase in almost 12 years from the governing body.

About the Newcrest share price

Over the last 12 months, the Newcrest share price is relatively flat, with year to date up almost 10%.

On valuation grounds, Newcrest commands a market capitalisation of approximately $24.01 billion.

The post Own Newcrest shares? Here’s how the share price performed in April appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Newcrest share price slumps despite earnings guidance boost
• Can the gold price surge above US$2,000 again this year?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras 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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The AGL Energy Limited (ASX: AGL) share price has come under pressure on Monday.

In morning trade, the energy company’s shares are down 3.5% to $8.39.

Why is the AGL share price falling?

The catalyst for the weakness in the AGL share price on Monday has been the release of a profit warning.

According to the release, AGL has downgraded its earnings guidance for FY 2022 due to a generator fault at Unit 2 of the Loy Yang A Power Station in Victoria in April.

AGL now expects its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $1,230 million and $1,300 million. This is down from its previous guidance range of between $1,275 million and $1,400 million.

It will be a similar story on the bottom line, with underlying profit after tax for FY 2022 now expected to be between $220 million and $270 million. This is down from AGL’s previous guidance range of between $260 million to $340 million.

What about FY 2023?

The release explains that AGL currently expects the unit to return to service by 1 August. Engineering assessments are continuing and AGL will inform the market of any material changes to this timeframe.

In light of this, the financial impact from the event will be split between FY 2022 and FY 2023. This will be approximately $60 million pre-tax ($41 million after tax) in FY 2022 and approximately $13 million pre-tax ($9 million after tax) in FY 2023.

The company also revealed that it is focused on affordability and reliability for its customers and is reviewing whether any upcoming planned outages in the rest of the generation portfolio can be shifted to help mitigate AGL’s shorter energy position in the market.

The post AGL share price tumbles on earnings guidance downgrade appeared first on The Motley Fool Australia.

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• Faults and financials: Why is the AGL share price getting zapped 6% today?

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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The Treasury Wine Estates Ltd (ASX: TWE) share price has traded sideways over the past four months.

Investors quickly snapped up the winemaking and distribution giant’s shares following the company’s first-half results.

The strong bidding led Treasury Wine shares to accelerate from $10.54 on 15 February to $11.77 the following day.

Although this represents a gain of 11.6%, its shares have gradually retraced to $11.27 at Friday’s market close. This means that the company’s shares are now down 9% for 2022.

What did Treasury Wine last report?

Treasury Wine updated the ASX in mid-February with its financial scorecard for the six months ending 31 December.

The company reported mixed numbers across key financial metrics.

Namely, net sales revenue declined 10.1% to $1,267 million over the prior corresponding year. The weakened result reflected the impact of the United States commercial portfolio divestiture and the decline in shipments to mainland China.

On the bottom line, Treasury Wine recorded a fall of 7.5% in net profit after tax (NPAT) to $109.1 million.

While the decline in earnings was expected, investors chose to focus on the CEO’s comments on the company’s outlook.

Treasury Wine boss Mr Tim Ford said that trading conditions for the second half will be broadly consistent with H1 FY22.

However, looking further ahead, the company’s “financial objective remains to deliver sustainable top-line growth and high single-digit average earnings growth over the long-term.”

How much is Treasury Wine scheduled to pay in dividends?

With the company’s latest interim dividend of 15 cents per share paid last month, investors may be wondering what’s next.

Goldman Sachs is forecasting Treasury Wine to reward shareholders with a total FY22 dividend payment of 31 cents. This implies a final dividend payment of 16 cents per share for the second half.

When calculating against the current share price, Treasury Wine is trailing on a forecast fully-franked dividend yield of 2.75%. It is expected that the payout ratio will be at 65%, in line with the company’s guidance of 55% to 70%.

It’s worth remembering that the company has been a relatively consistent dividend payer over the years. Before the onset of COVID-19, the company had been paying shareholders fully-franked dividends of up to 20 cents on a biannual basis.

When looking at these numbers from above, the 2.75% dividend yield falls short of the Treasury Wine share price decline.

If the company’s shares can make a turnaround and reach the $12 mark – what it was trading at throughout the 12 months – then the dividend yield is worth its weight.

About the Treasury Wine share price

In 2022, the Treasury Wine share price has risen 10% in value, regardless of the short-term volatility.

Based on valuation grounds, Treasury Wine commands a market capitalisation of approximately $8.14 billion.

The post The Treasury Wine share price has tumbled 9% in 2022, so is the dividend yield worth its weight? appeared first on The Motley Fool Australia.

More reading

• Can the Treasury Wine share price recover from its post-China hangover?
• 2 ASX shares ripe to buy at current prices: expert
• Top broker tips Treasury Wine share price to rise almost 25%
• Leading brokers name 3 ASX shares to buy today
• Can the Treasury Wine share price have a better month in April?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Treasury Wine Estates 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 Rio Tinto Ltd (ASX: RIO) share price tumbled last month after the company reported a disappointing quarterly trading update.

At Friday’s market close and for end of April, the mining giant’s shares finished almost 5% down. This is despite the company edging around 4% higher in the last three trading days of the month.

What’s going on with Rio Tinto shares?

Investors were heading for the exits as the Rio Tinto share price fell more than 10% following the company’s first-quarter results.

Rio Tinto delivered its first-quarter production report on 20 April, revealing a soft performance across the board.

Management acknowledged another difficult quarter operationally despite the commencement of underground mining at Oyu Tolgoi.

Market expectations were revised downwards amidst sustained high inflation, the Russia-Ukraine war, and a resurgence of COVID-19 lockdowns in China.

While commodity prices increased due to disruptions in supply, production diminished because of downside risks to near-term construction activity.

Nonetheless, the miner stated that full-year shipments guidance remains unchanged.

The news sent Rio Tinto shares backtracking almost 3% on the day.

Rio Tinto noted that further downside risks include a prolonged war, extended labour and supply shortages, and monetary policy adjustments.

What do the brokers think?

A number of brokers weighed in on Rio Tinto’s shares after the release of its latest performance report.

Analysts at Goldman Sachs cut its price target by 1% to $135.10. Based on the current share price, this implies an upside of around 20%. Clearly, the broker believes there is still significant value in the miner despite the short-term volatility.

On the other hand, Morgans had a more bearish tone, slashing its 12-month rating by 6.6% to $114.00. This is in line with where the Rio Tinto share price traded on Friday.

Rio Tinto share price review

Over the past 12 months, Rio Tinto shares have dipped by about 7%. Although, when looking at 2022, its shares have gained almost 13% for the period.

On valuation grounds, Rio Tinto commands a market capitalisation of roughly $41.88 billion.

The post The Rio Tinto share price delivered a disappointing performance in April. Here’s why appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares just had their best trading day in 5 weeks. What’s next?
• Why is the Rio Tinto share price rebounding strongly on Thursday?
• Cash generation among ASX 200 iron ore shares will ‘be significant’ in 2022: expert
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Sinking iron ore price sends ASX 200 mining shares tumbling

Motley Fool contributor Aaron Teboneras 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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The Qantas Airways Limited (ASX: QAN) share price is on watch today following several key updates from the airline.

Qantas shares closed on Friday at $5.60 apiece.

What key updates did Qantas announce?

The Qantas share price is in the spotlight on Monday after the Aussie airline reported that domestic travel numbers were returning to levels not seen since the onset of the pandemic faster than expected. Both leisure and travel demand were said to be rebounding strongly.

The airline also said there is strong demand for international flights, but this segment remains hampered by travel restrictions persisting in some nations.

On the financial front, Qantas expects its net debt levels to fall to $4.5 billion by the end of April, which brings net debt back to pre-pandemic levels.

Looking ahead to the second half of 2022, underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2H22 are forecast to come in at $450 million to $550 million.

In a separate announcement, Qantas revealed that the board has given the go ahead for ‘Project Sunrise‘, the airline’s long haul scheme. Qantas will order 12 new Airbus A350s that will fly direct from Australia to major overseas destinations like London and New York.

The flights – the longest operated by any airline in the world – will commence in 2025 out of Sydney.

Commenting on the move, Qantas CEO Alan Joyce said:

New types of aircraft make new things possible. That’s what makes today’s announcement so significant for the national carrier and for a country like Australia where air travel is crucial…

The Board’s decision to approve what is the largest aircraft order in Australian aviation is a clear vote of confidence in the future of the Qantas Group. Our strategy for these aircraft will see us generate significant benefits for those who make it possible – our people, our customers and our shareholders.

Qantas share price snapshot

The Qantas share price has gained 8.8% so far in 2022. That compares to a loss of 2.0% posted by the S&P/ASX 200 Index (ASX: XJO).

The post ‘Clear vote of confidence’: Qantas share price on watch following key updates appeared first on The Motley Fool Australia.

More reading

• Travel’s back! 3 ASX shares this expert loves right now
• Why this fundie is tipping 120% upside for the Qantas share price
• Why are ASX 200 travel shares having a first-class end to the week?
• When did Qantas last pay a dividend?
• Qantas share price climbs 3% as international travel garners speed

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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Bank of Queensland Ltd (ASX: BOQ) shareholders might be feeling frustrated after the bank’s share price has seesawed in recent times.

The regional bank released its half-year results for the 2022 financial year, reporting single-digit increases across its top line metrics.

The board opted to significantly ramp up its upcoming interim dividend to eligible investors.

Let’s take a look below at what you need to know about the latest dividend.

What’s the deal with the Bank of Queensland interim dividend?

The Bank of Queensland share price backtracked as investors vented their disappointment following the release of the bank’s financial scorecard.

The company is set to pay out 22 cents per share for the six months ending 28 February 2022. That’s 29% higher than last year’s interim dividend of 17 cents per share for first half of FY21.

Furthermore, the payout ratio for the latest dividend is at 53% (in line with the target range of 60%-75% of cash earnings).

Management, however, noted there may still be uncertainty associated with COVID-19 over the next year. Nonetheless, while maintaining a prudent approach to provisioning, the bank expects CET1 [Common Equity Tier 1] to remain above 9.5%.

The higher dividend came despite the company recording a slight fall of net profit after tax (NPAT) to $212 million. In the previous period (H2 FY21), the group achieved NPAT of $215 million.

When can shareholders expect to be paid?

Bank of Queensland will pay the interim dividend to eligible shareholders on 26 May.

However, to be eligible you’ll need to own Bank of Queensland shares before the ex-dividend date which falls on Wednesday 4 May. This means if you want to secure the dividend, you will need to purchase the company’s shares by tomorrow, Tuesday 3 May at the latest.

It is worth noting that on the ex-dividend day, the share price traditionally falls in proportion to the dividend amount.

In addition, the dividend is fully franked which means that investors will receive tax credits when tax time comes along.

Currently, Bank of Queensland has a dividend trailing yield of 4.90% and a market capitalisation of roughly $5.09 billion.

The post Hoping to bag the Bank of Queensland dividend? Read this appeared first on The Motley Fool Australia.

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• Broker says Bank of Queensland share price is great value

Motley Fool contributor Aaron Teboneras 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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An Australian firm has brought the latest investing fad dubbed ETFs 2.0 from overseas to the local market.

Nucleus Wealth recently launched directindexing.com.au to allow Australians to invest through “direct indexing”.

Direct indexing builds on the concept of a passive index fund, but allows customisations of individual stock holdings according to each investor’s tastes.

“Direct indexing involves the investor owning the individual shares that make up an index in a separately managed account,” said Nucleus Wealth chief investment officer Damien Klassen.

“Because the investor directly owns each of the shares in their own account, Nucleus Wealth is able to customise their superannuation or investments.”

How direct indexing works

For example, if an investor wants their money to track the S&P/ASX 200 Index (ASX: XJO) but wants to avoid the big banks, they could simply sell their shares in Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

The same goes for those who want to eliminate fossil fuel producers or gambling from their portfolios.

“Where an index mutual fund, an index ETF or traditional superannuation fund merely tracks the index, direct investing allows investors to control their investment decisions,” said Klassen.

“Investors can modify their portfolios by creating ’tilts’, which is the ability to remove or add certain holdings or sectors according to personal preferences.”

The direct indexing product from Nucleus Wealth is charging from 0.11% upwards on a sliding scale based on the amount invested.

Form your own opinions about ethical investing

Nucleus Wealth chief operating officer Shelley George said ETFs are now like Henry Ford’s famous quote, “Any customer can have a car painted any colour that he wants, so long as it is black”.

“Before direct investing, if you want a red car, you had to go to a stock broker and build the entire car from the base parts,” she said.

“Nucleus looks at direct investing as providing a third option: take an already built car and add your own custom tilts.”

The direct indexing concept hands the power to individuals to invest ethically, according to their own beliefs and criteria.

“When it comes to ethical investing, the questions become more nuanced and the answers often depend on the individual,” said Klassen.

The post Direct indexing: What is this latest investing fad? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Tony Yoo 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 recommended Westpac Banking Corporation. 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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If you’ve been on an aeroplane lately, you’ll know that travel is back in a big way.

National daily cases of COVID-19 topped 42,000 this week, which is a number that would have horrified any of us one year ago.

But with high vaccination rates and low hospitalisations, Australians seem to have regained confidence about flying in a tin can with hundreds of others to go for that long-awaited holiday or work trip. 

Just over Easter, Sydney Airport could not handle the number of passengers trying to check in, with queues snaking onto the road outside the terminal.

Through the congestion my family only managed to board our 8:40am flight at 8:38am, thanks to the generosity of the airline crew who held the door open for us.

For Sage Capital portfolio manager Kelli Meagher, all this means is that there is a massive boom underway for ASX travel shares.

“The reason we like the travel sector is that it marches to the beat of its own drum no matter what’s happening from a broad, macro perspective,” she told Switzer TV Investing.

“There’s so much pent-up demand for travel. Here in Australia, there’s a whole lot of excess savings that… they’re really keen to spend.”

There are three specific ASX shares in this industry that Meagher likes at the moment.

‘We don’t even have to see a full rebound’

Most travel businesses were forced to raise capital to stay afloat during the pandemic, as they burned through cash for operations while revenue dried up.

But not Corporate Travel Management Ltd (ASX: CTD).

“Corporate Travel was pretty much the only one that didn’t raise money to survive. They raised money to make some pretty clever acquisitions.”

This sets the company up for huge post-COVID growth, according to Meagher.

“We like Corporate Travel over the longer term just because it is now in a much stronger position to gain market share,” she said.

“We don’t even have to see a full rebound of corporate travel back to [pre-COVID] levels… for Corporate Travel to grow its earnings, because it’s a market share and margin game.”

The Corporate Travel share price has risen more than 14% this year so far, and a tidy 42% over the past 12 months.

Meagher likes Australia’s dominant airline Qantas Airways Limited (ASX: QAN) for entirely different reasons.

Fortunes of aviation businesses heavily depend on how much they have to pay for fuel, which is linked to crude oil prices.

While oil has become very expensive over the past few months, Meagher feels like Qantas has done a great job of shielding itself.

“They’ve got their fuel hedging very well sorted, at least till the end of the year.”

Meagher also loves how its dominant market position gives Qantas extraordinary power to set its own prices.

“Any extra fuel costs should be able to be passed through to the consumer, who’s still pretty keen to travel,” she said.

“Anyone keen to go on a holiday and was going to pay $200 for their tickets probably will be okay to pay $220.”

Qantas shares are up 11.78% so far this year.

Meagher’s third pick requires the business to put in significantly more work than Qantas and Corporate Travel to get its share price climbing back to past glories.

But she suspects Flight Centre Travel Group Ltd (ASX: FLT) shares are on their way up “simply because it’s a well-known name” and is a “go-to stop for many investors who want exposure to travel”.

“They are fighting a lot more headwinds than someone like Corporate Travel, because they’re fighting things like airlines cutting commissions.”

With loss-making airlines trimming their costs and reducing payouts to travel agents, Meagher reckons Flight Centre might have to create new sources of revenue.

“They’re going to have to make their money somewhere else, maybe by charging when you walk into a Flight Centre [store]… to sit down and talk to someone about your itinerary.”

The Flight Centre share price is more than 28% above where it started the year.

The post Travel’s back! 3 ASX shares this expert loves right now appeared first on The Motley Fool Australia.

More reading

• Why this fundie is tipping 120% upside for the Qantas share price
• Why is the Flight Centre share price trouncing ahead of the ASX 200 today?
• Why are ASX 200 travel shares having a first-class end to the week?
• When did Qantas last pay a dividend?
• How long will the Flight Centre share price keep getting battered by COVID-19?

Motley Fool contributor Tony Yoo has positions in Corporate Travel Management 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 recommended Corporate Travel Management Limited and Flight Centre Travel Group 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a difficult week in a very positive fashion. The benchmark index charged 1.05% higher to 7,435 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to start the week deep in the red following a very poor finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 94 points or 1.25% lower this morning. On Wall Street, the Dow Jones fell 2.8%, the S&P 500 dropped 3.6%, and the Nasdaq sank 4.2%.

Oil prices fall

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a subdued start to the week after oil prices dropped. According to Bloomberg, the WTI crude oil price fell 0.65% to US$104.69 a barrel and the Brent crude oil price dropped 0.1% to US$107.14 a barrel. Lockdowns in China have been weighing on demand.

ResMed share price is in the buy zone

The team at Goldman Sachs believes the ResMed Inc (ASX: RMD) share price weakness last week is a buying opportunity. This morning the broker retained its buy rating but trimmed its price target to $33.70. This implies potential upside of almost 16% for investors. While near term supply chain pressure remains acute, the long term opportunity remains.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 1.1% to US$1,911.7 an ounce. Traders were buying gold after demand for safe haven assets increased.

PointsBet shares could be dirt cheap

The Pointsbet Holdings Ltd (ASX: PBH) share price could prove to be dirt cheap if Goldman Sachs has made the right call. Another note out of the broker reveals that its analysts have retained their buy rating with a $5.78 price target. This is almost double the current PointsBet share price. It said: “While sentiment in the sector remains challenging (high growth/long duration), operating results remain solid and the MT opportunity remains intact.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX shares today
• Why Kogan, Reliance, ResMed, and Sandfire shares are dropping
• Why Nitro, PointsBet, Sezzle, and Siteminder shares are racing higher

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 positions in and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and ResMed Inc. 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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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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