The COVID-19 pandemic has changed how consumers and governments look at health and hygiene. As a result, shares in the sector could be poised to blossom in 2020 and beyond.

Here are 3 ASX shares exposed to the healthcare sector you should think of buying now for the long term.

Ansell Limited (ASX: ANN)

Ansell is a global leader in developing, manufacturing and distributing health and safety protection solutions. The company could be well poised to benefit in the post-COVID world as the population becomes more aware of safety and hygiene protocols.

In late March, Ansell reaffirmed its earnings per share guidance for FY20 and cited strong demand for its hand and body protection products. Ansell also assured investors that its balance sheet remains in a strong position and the company is working to maximise its product output.

Medibank Private Ltd (ASX: MPL)

The COVID-19 pandemic could result in consumers and households becoming more aware of their overall health and encourage trips to hospitals and general practices. As a result, many might look to spend money on private health insurers like Medibank for peace of mind.

In addition, with the federal government’s budget coming under pressure post-pandemic, private healthcare might become more popular as public health systems become constrained. This could see the emergence of alternative care models such as telehealth becoming more prominent.

In a recent letter to shareholders, Medibank provided assurance that the COVID-19 pandemic is expected to have no overall impact on the company’s FY20 financial outlook. The company also assured shareholders of its strong and debt-free balance sheet, whilst also elaborating that Medibank is well-positioned to benefit from changes in the healthcare sector.

Sonic Healthcare Limited (ASX: SHL)

Sonic is the third-largest pathology provider in the world, generating relatively defensive revenue from radiology and pathology services. Although the pandemic forced the company to withdraw its earnings guidance for FY20, Sonic was able to secure a contract from the Australian government to provide testing for COVID-19.

In addition to playing a crucial frontline role, Sonic also boasts a strong financial position with a balance sheet boasting almost $1 billion in cash on hand. This could allow Sonic to fuel its growth through acquisitions of smaller, struggling providers. Additionally, with the public being forced to live with the virus until a vaccine is found, Sonic could benefit from further contracts in the future.

Should you buy?

In my opinion, the ASX healthcare sector is poised to benefit from various tailwinds in the long term. Apart from an ageing population and the demand this has for healthcare, the sector could benefit from renewed consumer behaviour and the public’s approach to health and wellbeing post-pandemic.

I suggest that investors create a watchlist of ASX shares that could benefit from a boom in healthcare and wait for positive price action before making an investment decision.

More reading

• In a post-COVID world, could Australia be the next superpower?
• 3 ASX 200 pandemic winners and 3 losers
• Protect your portfolio with these defensive ASX shares
• ASX shares and investing trends that could boom post COVID-19
• Why Dicker Data, Medibank, Mesoblast, & Orora are dropping lower

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. and Sonic Healthcare 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.

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The Altium Limited (ASX: ALU) share price is having a rare off day and is sinking lower on Tuesday afternoon.

At the time of writing the electronic design software company’s shares are down 4% to $35.35.

Why is the Altium share price sinking lower?

Investors have been hitting the sell button today after Altium warned that it could fall short of its aspirational goal of US$200 million in revenue in FY 2020.

This is because the company is anticipating some headwinds in the important months of May and June. These have been caused by the ongoing restrictions and lockdowns associated with COVID-19 in the United States and Western Europe.

Altium’s CEO, Aram Mirkazemi, explained: “While engineers are actively doing prototype designs, and the electronics industry is holding up relatively well, the cash preservation priorities of small to medium size businesses are likely to affect the timing of closing sales in our typically strongest months of the year being May and especially June.”

The company’s CFO, Joe Bedewi, added: “Our long-term aspirational goal of US$200 million revenue for the full year will require our typically strong months of May and June to be unaffected and have the usual strong finish. At this point, given the economic consequences of the continued restrictions, this is likely to be a low probability.”

Is this a buying opportunity?

While this news is slightly disappointing, it is not unexpected given how the pandemic has shaken the global economy.

Furthermore, the market was already predicting revenues lower than this aspiration target.

According to a note out of Goldman Sachs, it was forecasting FY 2020 revenue of US$194 million and EBITDA of US$71 million. This was largely in line with the market’s expectations, with the Bloomberg consensus at US$186 million and EBITDA of US$71 million.

And while there may be concerns that the weakness could carry over into FY 2021, Goldman Sachs remains comfortable with its estimates. Both the broker and the consensus are expecting revenue growth of 18% next year.

The broker commented: “… our FY21E revenue forecasts (and those of consensus) assume +18% growth on FY20E. We regard this as achievable at this stage but note it is likely to be more second half weighted than usual as 1H21E is likely to still remain relatively challenging.”

I agree and believe Altium’s growth will accelerate once these headwinds ease. Which could make it worth taking advantage of today’s share price weakness to pick up shares. Especially with the company still aiming to achieve market domination and 100,000 subscribers by 2025.

This will be double its expected FY 2020 subscriber base and, along with its other growing businesses, should drive strong earnings growth as it scales.

More reading

• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
• Why Altium, ELMO, Suncorp, & Webjet shares are sinking lower
• 3 ASX tech shares to buy now for long-term returns
• Altium share price on watch after warning of tough trading conditions
• In a post-COVID world, could Australia be the next superpower?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium. 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.

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Polynovo Ltd (ASX: PNV) shares could be about to surge in 2020. The ASX 200 healthcare company boasts a market capitalisation of $1.71 billion at the moment, but I think it could grow to be the next CSL Limited (ASX: CSL).

Why the Polynovo share price is climbing higher

Concerns about COVID-19 smashed the S&P/ASX 200 Index (ASX: XJO) in late February and for most of March. The Polynovo share price was no different and slumped as low as $1.32 per share on 23 March.

Since then, the ASX 200 has rebounded and gone on a bullish run. Polynovo has followed suit – at the time of writing, the ASX healthcare share is up 96.21% in the space of just 6 weeks. Pretty impressive, even for an Aussie growth share.

But I think that this 96.21% gain could be just the beginning. Polynovo has a strong research and development (R&D) pipeline and is continuing to bring more products to market. I can’t see demand for medical technology and Polynovo’s flagship NovoSorb product subsiding any time soon.

In fact, I think Polynovo could follow in CSL’s footsteps to become the next large-cap ASX healthcare share.

Will Polynovo be the next ASX healthcare leader?

CSL remains the gold standard in terms of ASX healthcare shares. The biotech giant is worth a whopping $137 billion right now and is up more than 40,000% since its IPO.

Polynovo could be on a similar path if things continue going well. The medical group reported record US quarterly sales for the March quarter and this COVID-19 volatility looks to be a minor speed bump.

The technical environment remains good for the company in 2020. In fact, the Polynovo share price is up more than 3,000% in just 5 years and could be one to watch in the years to come.

Foolish takeaway

It’s hard to pick value with all the noise in the markets right now. However, Polynovo looks to be a high-quality growth share with solid R&D prospects. That could make Polynovo a top ASX healthcare share to buy despite the economic uncertainty we’re seeing today.

More reading

• Where to invest $10,000 in ASX 200 shares immediately
• 3 must-read investing books for new investors
• Leading brokers name 3 ASX shares to sell today
• Is ‘buy-and-hold’ the best way to invest in ASX shares?
• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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If you’re lucky enough to have $10,000 sitting in a savings account, then now could be an opportune time to invest it.

After all, the S&P/ASX 200 Index (ASX: XJO) is still down 25% from its February high and interest rates are at historical lows and unlikely to improve any time soon.

With that in mind, here are three ASX 200 shares that I believe would be worth considering as investments:

Appen Ltd (ASX: APX)

Appen is a provider of human annotated dataset development services. The company’s million-strong crowd sourced team of experts prepare the data that goes into the machine learning and artificial intelligence models of some of the world’s biggest tech companies. Given the growing importance of this technology and expectations that spending on it will grow materially over the next decade, I believe Appen is well-placed for long term growth.

CSL Limited (ASX: CSL)

Another option for investors to consider buying is this biotherapeutics giant. I think CSL is well-placed to be a market beater again over the next decade thanks to the quality of its therapies and the high level of investment in research and development it makes each year. In respect to the latter, in FY 2019 CSL invested a massive US$832 million in R&D activities across its businesses. I expect these investments to bear fruit over the coming years and cement its position at the leader in its field.

NEXTDC Ltd (ASX: NXT)

Another company which I think could be a great option for a $10,000 investment is NEXTDC. The data centre operator has been growing very strongly over the last few years thanks to the increasing amount of data being generated by both consumers and businesses. And with data consumption only going to increase in the future as more software moves to the cloud and 5G internet adoption grows, the future looks bright for NEXTDC.

More reading

• 2 ASX shares that could set you up for life
• Is this ASX healthcare share about to soar?
• 3 must-read investing books for new investors
• Leading brokers name 3 ASX shares to sell today
• Is ‘buy-and-hold’ the best way to invest in ASX shares?

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of Appen Ltd. 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.

The post Where to invest $10,000 in ASX 200 shares immediately appeared first on Motley Fool Australia.

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The Pushpay Holdings Ltd (ASX: PPH) share price continued its positive run on Tuesday and raced to a record high of $6.54 this morning.

When the donor management system provider’s shares reached that level, it meant they were up around 70% since the start of the year.

Why is the Pushpay share price at a record high?

Investors have been fighting to get hold of the company’s shares since the release of a very strong full year result release last week. 

That result revealed that Pushpay has continued its meteoric growth in 2020 despite the global coronavirus pandemic.

For the 12 months ended March 31, the company reported a 33% increase in operating revenue to US$127.5 million.

This was driven by a 39% increase in total processing volume to US$5 billion, a 42% lift in customer numbers to 10,896, and flat average revenue per user of US$1,317 per month.

But perhaps most impressive was the operating leverage it achieved during the 12 months.

Its operating revenue may have grown 33% during the 12 months, but its operating expenses needed to only lift by 5% to achieve this. As a result, as a percentage of operating revenue, its operating expenses reduced from 65% to 52%.

This ultimately led to the company reporting a whopping 1,506% increase in earnings before interest, tax, depreciation, amortisation and foreign currency gains/losses (EBITDAF) to US$25.1 million.

What about the future?

More of the same is expected in FY 2021 despite the pandemic. In fact, you might argue that the pandemic is accelerating the adoption of its technology and therefore its growth.

Management notes that church closures have led to a clear shift to digital, with customers utilising its mobile first technology solutions to communicate with their congregations.

In light of this and its expectation of achieving further operating leverage, management has provided EBITDAF guidance of between US$48 million and US$52 million. This represents a 91.2% to 107% increase, respectively, year on year.

But it doesn’t expect its growth to stop there. Management is aiming to grow its share of the medium and large church market to 50% in the future.

This represents a US$1 billion opportunity and is many multiples the US$127.5 million it achieved in FY 2020.

Based on its current EBITDAF margin (which is likely to expand in the future as it scales), US$1 billion in revenue would equate to EBITDAF of ~US$197 million. Once again, this is many times more than the US$25.1 million it achieved this year.

Due to the quality of its offering and its strong market position, I feel confident the company will achieve this target during the 2020s.

In light of this, I think Pushpay is a tech share to buy and hold for the long term along with Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

More reading

• 3 ASX growth shares to buy immediately with $3,000
• 3 ASX tech shares to buy and hold until at least 2030
• These are the star ASX shares of the week
• 3 star ASX shares to buy for the rest of 2020
• 3 ASX shares that could set you up for life

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of Altium and Appen Ltd. 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.

The post The Pushpay share price is up 70% in 2020: Why I would still invest appeared first on Motley Fool Australia.

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Ready to learn more about investing? Great! Owning shares in robust, growing companies can significantly transform your wealth over time.

Just think about how owning shares in blood product company CSL Limited (ASX: CSL) could have turned a $1,000 investment into over $200,000.

If you want to get your finances sorted and learn to invest, here are 3 books I think are must-reads to get you started:

1. Unshakeable: Your Financial Freedom Playbook by Tony Robbins

I know, I know, it’s Tony Robbins. But having read this book cover to cover, I think Unshakeable is one of the best investing books you can get. In it, Robbins taps his connections to the world’s best investors including Jack Bogle, Ray Dalio and Howard Marks to explain how to think about investing and how to get started.

The book spells out the importance of minimising fees, diversification and being cautious with who you trust for advice. But I also think the book offers valuable insight on how to choose individual investments and hunt for big winners like CSL.

3 key takeaways:

• As investors, we get betrayed by our emotions. We can avoid this by automating the process and letting time do the hard work.
• When investing, focus on risk reduction and not getting wiped out. It is incredibly difficult to claw your way back from a big loss.
• We should look for asymmetric returns when investing in individual companies, where the upside is much bigger than the potential downside.

2. One Up On Wall Street by Peter Lynch

If you’re ready to start researching companies yourself, Peter Lynch’s One Up On Wall Street is the place to start. Peter Lynch was one of the world’s top mutual fund managers in the ‘70s and ‘80s, and he shows us how we can use our own ‘edge‘ to find some of the best investing ideas.

One of the most important ideas in the book is Lynch’s ‘two-minute drill’. This means being able to explain your reasons for investing in a company, what needs to happen for the company to be successful and what the potential risks are. 

From the best time to buy and sell to understanding company earnings, this book is a great dive into the investing process, even 30 years on.

3 key takeaways:

• Every day we come across potential investing ideas as we go about our lives that can fly under the radar of professional investors.
• Picking shares takes time and dedication. Be prepared to do your homework and dedicate time each week to research and keeping up with company news.
• Understand how companies you own shares in make money and write down the specific reasons for holding shares in them.

3. The Little Book That Builds Wealth by Pat Dorsey

Some of the best businesses are those with a strong competitive advantage, or economic moat. A sustainable economic moat lets a company reinvest its cash at high rates of return and this can turn a small initial investment into staggering wealth. 

Dorsey was director of stock research for investment research provider Morningstar Inc. and his book is an excellent guide to identifying businesses with robust moats, like A2 Milk Company Ltd (ASX: A2M) and Xero Limited (ASX: XRO).

3 key takeaways:

• Competitive moats can come in many forms, including switching costs, network effects, cost advantages and intangible assets.
• Moats can erode over time, especially as technology evolves.
• To get an overview of the moats covered in the book, you can listen to this fantastic podcast from The Investor’s Field Guide.

Foolish takeaway

Learning to invest can be daunting. But these 3 easy-going books will give you an incredible headstart. They will teach you what to look for, what to avoid, and help to give you the confidence to get started.

More reading

• UBS picks the real ASX winners from the COVID-19 grocery boom
• Is ‘buy-and-hold’ the best way to invest in ASX shares?
• These were the top 10 ASX 200 shares over the last year
• In a post-COVID world, could Australia be the next superpower?
• Buy these 4 ASX shares to survive the pandemic

Regan Pearson owns shares of A2 Milk and Xero.

You can follow him on Twitter @Regan_Invests.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia owns shares of A2 Milk and Xero. 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.

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There are 3 emerging trends bubbling away underneath the headlines which promise to be lucrative for astute investors. However, 3 dramatic movements have dominated commodity news. The collapse of the oil price. The momentum in the iron ore market. And the bull run in the gold sector.

Aluminium is a busted flush

The transport sector uses approximately 27% of global aluminium production. While the full extent of the economic damage of COVID-19 is yet to be revealed, it is safe to say car purchases are likely to fall. Furthermore, if stay-at-home becomes an endemic trend, or if there are second or third waves of infection, then car sales are likely to be hit further.

The aviation industry has also fallen silent. There is no clear indication of when this is likely to open up again between states, let alone between nations. The demand for new aircraft from cash-strapped airlines is likely to also fall. This is without even considering the glut in aluminium globally.

For investors, there are several companies to be wary of. Alumina Limited (ASX: AWC) will see a sustained fall in earnings. Aluminium is a notoriously slow market to respond to buying signals. Rio Tinto Limited (ASX: RIO) will also feel the weight of this trend on earnings. 

Copper a surprise emerging trend

Copper entered the current crisis in a good position. It had reasonable inventory levels with falling supply pipeline of copper mines. However, during the lockdowns, numerous large-scale copper mines were closed. The copper spot price has just hit an 8 week high. It paints a good picture of post-pandemic spot prices. 

Copper is a ubiquitous base metal. With such wide applications, the impacts will be uneven. The surprise development has been the antibacterial elements of copper and the use of copper coatings has already begun. It is also starting to be used to build fittings for hospitals as well as other high traffic areas. 

The big ASX winners here are companies like Sandfire Resources Ltd (ASX: SFR) or BHP Group Ltd (ASX: BHP). BHP, in particular, is the world’s third-largest copper producer and will likely emerge from lockdown stronger than when it started.

Nickel supported by reduced supply

Nickel is still sitting at its lowest price for 12 months. While this is due to the demand pause during lockdowns, it is not out of character for a cyclical commodity like this. Nonetheless, as we enter the post-pandemic phase, the nickel price is likely to rise.

In the medium term, the nickel price has a strong upside. The emerging trend is on the supply side. Indonesia has banned exports of nickel ore, placing a structural change on global supply. In addition, nickel stands to benefit from any future technology advances in batteries and electric cars. It is estimated that around 50kg of nickel is required for each car.

BHP again stands to benefit as the world’s fifth-largest Nickel producer. IGO Ltd (ASX: IGO) and South32 Ltd (ASX: S32) will likely see a positive impact on earnings as nickel producers. Meanwhile, Western Areas Ltd (ASX: WSA) remains a reasonable nickel pure play.

More reading

• 3 ASX dividend kings to buy and hold forever
• Top ASX Dividend Stock Picks for May 2020
• 3 cheap ASX 200 shares for value investors
• Are there any safe havens in ASX aviation shares?
• These ASX 200 shares saw the biggest falls last week

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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Traditional ASX blue-chip shares are cutting their dividends. Income investors looking for growing dividends may do well holding Carsales.Com Ltd (ASX: CAR), JB Hi-Fi Limited (ASX: JBH) and Domino’s Pizza Enterprises Ltd. (ASX: DMP).

For my analysis, I looked at 2010 to 2019 calendar years.

Carsales

Carsales has grown its dividend except in 2013 when the dividend fell from 31 cents in 2012 to 28 cents in 2013. Since then, Carsales’ dividend has grown each year, as can be seen by the chart below:

Despite the headwinds, CEO Cameron McIntyre stated in a recent business update: “Our market leading position, strong customer proposition and diversification across geography and product supports our resilience and positions Carsales well into the future.”

The Carsales share price trades 28% lower from its 52-week high of $19.60. I believe this reflects the short-term uncertainty in the economy. Having said that, Carsales is a quality tech company growing its dividend in 9 out of the last 10 years and could continue to reward patient growth and income investors over the next decade.

JB Hi-Fi

JB Hi-Fi has rewarded patient long-term investors with a growing dividend between 2012 and 2019. While short-term headwinds are impacting the economy, JB Hi-Fi has a track record of a growing dividend, as can be seen by the chart below:

Last week on 6 May, JB Hi-Fi released a third-quarter market update detailing an acceleration in sales. It attributed the rise in sales to anticipated easing of government restrictions. New Zealand was the only market in which it experienced a decline in sales. Strong growth in JB Hi-Fi and The Good Guys more than offset the weakness.

JB Hi-Fi also secured an additional $260 million of short-term debt facilities. However, it does not expect this will be needed despite a continued withdrawal of earnings guidance for FY20.

Despite the headwinds, JB Hi-Fi is a quality company that I believe will grow its dividends over the next decade despite the immediate uncertainty. The market appears to agree, sending the JB Hi-Fi share price up 42% over the past 12 months.

Domino’s Pizza

Domino’s is a dividend success story, managing to increase its dividend each year between 2010 and 2019. After paying an 18 cent dividend in 2010, this has heated up to $1.15 in 2019. In addition to paying rising dividends, the Domino’s share price has rallied 38% over the past 12 months.

Domino’s is reopening stores as worldwide restrictions issued by governments begin to be eased. It is seeing a shift in how consumers are ordering, with food delivery services soaring on the back of restrictions. In recognition of this, Domino’s has hired more team members.

In financial news, the balance sheet remains strong with no committed short-term debt and more than $260 million cash as of 27 March 2020.

The company’s medium-term outlook is unchanged for new store openings of 7% to 9% per year, growth in same-store sales of 3% to 6% per year, and increased net capital expenditure of $60 million to $100 million per year.

Despite the strong financial situation, some franchisees are waiting to see if stores will be reopened, dependent on local market conditions.

On balance, Domino’s appears to be in good shape for the long term. In my view, patient long-term shareholders could see further increases in dividends.

Foolish takeaway

Investing is a marathon, not a sprint. Shareholders in Carsales, JB Hi-Fi and Domino’s that have played the long game have seen both capital and income growth. I suspect this will continue and the recent uncertainty offers an opportunity to buy growing dividends at growing companies.

More reading

• Carsales share price down 26% since February. Is it now a good buy?
• Analysts think this ASX auto share could be turning the corner
• These 3 ASX 200 retail shares are absolutely thriving right now
• 3 ASX 200 pandemic winners and 3 losers
• Are ASX retail shares undervalued today?

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited and Domino’s Pizza Enterprises 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.

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On Monday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on them:

ASX Ltd (ASX: ASX)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and lifted the price target on this stock exchange operator’s shares to $71.50. This follows the release of its April update last week. Although Macquarie notes strong average daily volume growth and a sharp increase in capital raisings during the second half, it still feels its shares are overvalued at the current level. It estimates that ASX Ltd’s shares are changing hands at 31x estimated full year earnings. Its shares are trading at $83.00 this afternoon.

Cochlear Limited (ASX: COH)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $156.00 price target on this hearing solutions company’s shares following its recent trading update. That update revealed that Cochlear’s sales were down 60% in April because of a sharp reduction in elective surgeries during the pandemic. And although there has been a recovery in elective surgeries now, the broker isn’t overly confident on the trajectory of the recovery. It suspects it may take longer than the market expects and therefore holds firm with its sell rating. Cochlear’s shares are changing hands for $187.98 on Tuesday.

Domain Holdings Australia Ltd (ASX: DHG)

Analysts at Morgans have retained their reduce rating and $2.25 price target on this property listings company’s shares. According to the note, the broker expects a sharp decline in listing volumes in the fourth quarter of FY 2020 and further declines in the first two quarters of FY 2021. In light of this, it has reduced its revenue forecasts accordingly. Domain’s shares are trading at $2.93 this afternoon.

More reading

• ASX 200 sinks 1.3%: Big four banks drag ASX lower & Altium issues sales warning
• These 10 ASX 200 shares have fallen the most over the last year
• Carsales share price down 26% since February. Is it now a good buy?
• These were the top 10 ASX 200 shares over the last year
• Brokers may be upgrading this ASX stock even as it delivered a plunge in profits

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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.

The post Leading brokers name 3 ASX shares to sell today appeared first on Motley Fool Australia.

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