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The Oil Search Ltd (ASX: OSH) share price is sliding, down 1.3% in afternoon trade to $3.93 per share.

This comes as news breaks that Papua New Guinea may yet derail the company’s proposed $21 billion merger with ASX energy heavyweight Santos Ltd (ASX: STO).

As the Australian Financial Review reports, PNG’s Prime Minister James Marape has said that any merger would have to be in his nation’s best interests.

A fly in the merger ointment

PNG-based Oil Search needs the agreement of the Marape Government for its merger with Santos to move forward.

According to Marape:

Oil Search Limited is a prominent PNG company whose activities comprise a significant percentage of PNG’s GDP and provide the livelihood to thousands of Papua New Guineans both directly and indirectly. Any proposed merger must satisfy the national interest test…

We do not wish for the largest oil and gas company operating in our country to simply be a branch office of a foreign company. It is important that while maintaining a strictly commercial focus, the interests of all employees, contractors and service providers are given the highest priority.

In a sign that the PNG government could be manoeuvring for a better outcome for itself and the nation’s domestic oil and gas projects, Marape said, “I strongly recognise that the merger of these two important license players in the market can deliver higher capacity and value to our projects”.

Investors will be keeping a keen eye on the Oil Search share price as this plays out over the coming weeks.

Oil Search share price snapshot

The Oil Search share price has gained 28% over the past 12 months. This surpasses the 24% gains posted by the S&P/ASX 200 Index (ASX: XJO).

Year-to-date, the Oil Search share price has underperformed the benchmark, up 4.25% in 2021.

The post Oil Search (ASX:OSH) share price sliding amid fresh merger concerns appeared first on The Motley Fool Australia.

More reading

• Why ASX Energy shares are the worst performers today
• ASX 200 midday update: Energy shares drop, Resolute jumps, Xero higher
• Why is the Santos (ASX:STO) share price slipping today?
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 Bruce Jackson.

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The Australian Stock Exchange, ASX Ltd (ASX: ASX) share price has risen today. This is on reports of a major restructure within the Chief Executive Officer’s direct reports.

At the time of writing, shares in the security exchange service provider are swapping hands for $80.75, up 1.3%.

Shake up after outage

Whether the market is yet to realise, or if investors are looking on the news positively, the main exchange provider in Australia is moving upward this afternoon on the latest news.

According to reports, the company is undergoing a quiet but significant reshuffling of management responsibilities. Word on the street is these actions are the consequence of the trading outage experienced last year. This outage also did damage to the ASX share price, falling 5% in 5 days.

Correspondingly, a report conducted by IBM is expected to be released after ASX reports its earnings (ASX Earnings Calendar). This report will likely detail issues surrounding the high reliance brokers have on the ASX for making trades, and risk management protocols in place by the ASX in the event of future outages.

Potentially to address these matters, it is believed that the restructuring has resulted in the creation of four new businesses. These include listings, markets, technology and data, and securities and payments. While not much more is known at this stage, its understood further details will be provided on the release of results.

The shake-up entails the jostling around of 5 out of the 10 direct reports of CEO Dominic Stevens. In addition to, the pushback of the CHESS replacement project and the resignation of Peter Hiom (Deputy CEO), and David Raper (Executive General Manger of Trading Services).

A spokesperson for the company stated:

The purpose of the review is to ensure ASX’s structure best reflects strategic priorities, enhances accountability, sharpens focus on customers, and supports growth.

ASX share price snapshot

The ASX share price has been trying to climb its way back to where it was a year ago. Over the past six months, it has managed to regain 12.4%. However, the company’s shares remain 3.5% weaker on the 12-month time scale.

Currently, the company trades on a price-to-earnings (P/E) ratio of 30.7 times. Investors will see whether this ratio increases or decreases following its earnings in two weeks’ time.

The post ASX (ASX:ASX) share price climbs on reports of major restructure appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.2% to 7,516.2 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Emerge Gaming Ltd (ASX: EM1)

The Emerge Gaming share price has sunk 6% to 3.2 cents. This follows the embattled gaming company’s response to a series of questions by the Australian share market operator. In fact, the regulator sought answers for 14 questions. These were largely in relation to questionable statements included in recent announcements.

Imugene Limited (ASX: IMU)

The Imugene share price is down 3.5% to 28.5 cents. Investors have been selling the clinical stage immuno-oncology company’s shares despite it announcing an exclusive strategic partnership with Nasdaq-listed clinical-stage biotechnology company, Celularity. The two companies will work together to develop off-the-shelf placental-derived allogeneic therapies for the treatment of solid tumours.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down 3% to $1.96. This appears to have been driven by concerns over its cash burn. Research done by Ownership Matters, reported in the AFR, estimates that Mesoblast is close to recording $1 billion in cash outflows over the last decade. This has been spent on product development with little success to date.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price has fallen 1% to $12.20. This furniture retailer’s shares have been bouncing around today following the release of its full year results. After initially hitting a record high, the company’s shares began to tumble. Possible due to concerns over its soft start to FY 2022 because of lockdowns. It was for this reason that management was unable to provide guidance for the year ahead.

The post Why Emerge Gaming, Imugene, Mesoblast, & Nick Scali shares are dropping appeared first on The Motley Fool Australia.

More reading

• Nick Scali (ASX:NCK) share price up 5% to record high on FY 2021 results
• Why the Imugene (ASX:IMU) share price is charging higher on Thursday
• 2 ASX dividend shares that could be buys with yields above 5%
• Why the Mesoblast (ASX:MSB) share price is dropping on Friday
• Why AVZ Minerals, Imugene, Pointerra, & Resolute shares are dropping

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 Bruce Jackson.

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The Webjet Limited (ASX: WEB) share price has been a clear winner over the past decade. Early investors have realised a healthy return on their investment.

We’ve done the math so you can see the returns for yourself.

Long-term horizon wins again

Investors who purchased Webjet shares at the quoted closing price of $1.21 on 5 August 2011 would have realised a healthy payoff, if holding until today.

To illustrate, let’s assume we invested $2,000 on that day. That’s roughly 1,653 Webjet shares on the book.

The first way we need to examine our return is simply through assessing capital gains.

Comparing the capital appreciation over the two periods, our Webjet position has exhibited a capital gain of around 312% over this time period.

Exhibit 1. Webjet share price performance last 10 years (to date)

Source: Google Finance

But what about dividends?

Next, we need to factor in the effect of dividends, to examine our total return. We will ignore the effect of dividend yield for purposes of simplicity.

Over the term in question, Webjet rewarded shareholders with $1.47 per share in cash via its dividend regime.

Factoring in dividends received, we’ve actually seen a total return of 433%, meaning our initial investment would now be worth around $8,250 and change.

Exhibit 2. Webjet dividend payment history, 2009 – 2020 (current)

Source: The Motley Fool

Note the above calculations assume we can sell at the market price of $4.99 at the time of writing.

Some interesting outcomes arise if we make a few tweaks in our calculations. Let’s assume we reinvested the dividends we earned on our hard-earned investment to buy more Webjet shares, at each semi-annual payment over the last 10 years.

Firstly, note Webjet’s dividend has grown at a compound annual growth rate (CAGR) of 80% over our examination period.

As a result, this dividend reinvestment plan (DRIP) would have yielded a total return of 762%! Which is a meaningful spread above the S&P/ASX 200 Index (ASX: XJO)’s return over the same period.

Logically, this makes sense, as we are buying more shares which are going up in price over time. Carrying these assumptions through, this implies our position is now worth $15,240.

Long-term investing does pay off, given the right due diligence and patience, as evidenced by the Webjet share price.

Other factors to consider for the Webjet share price

The above scenario demonstrates the power of compounding, which has been labelled “the eighth wonder of the world” by experts across generations.

It reinforces the benefit of holding a long-term horizon when handling one’s investments. This is especially true when considering purchasing a company’s shares.

Webjet shares have also gained 75% over the last year as well. However, the Webjet share price has been hit hard by the Covid-19 pandemic this year.

The post If you’d invested $2,000 in Webjet (ASX:WEB) shares 10 years ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

More reading

• Here’s why the Webjet (ASX:WEB) share price moved in circles during July
• Webjet (ASX:WEB) share price slumps on extended QLD lockdown
• These are the 10 most shorted ASX shares
• Own Webjet (ASX:WEB) shares? Here’s what to look at during reporting season
• The Qantas (ASX:QAN) share price gained 3% on Tuesday morning

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Treasury Wine Estates Ltd (ASX: TWE) share price has edged higher on Thursday as the Aussie wine distributor pushes ahead into the online sales space.

Why is the Treasury Wine share price climbing?

Shares in the winemaker and distributor have edged 0.50% higher at the time of writing. That’s despite no new ASX announcements from Treasury Wine since way back on 13 May 2021.

However, an article in the Australian Financial Review (AFR) has piqued interest in the Treasury Wine share price. Treasury Wine is reportedly increasing its push into British and European wine markets with a focus on online sales.

Penfolds chief winemaker Peter Gago said the winemaker was “going up a gear” in its European push. The overseas push to diversify comes after China slapped tariffs on key Treasury Wine products in 2020.

Treasury Wine is reportedly shifting its focus for higher-end Penfolds wines to other countries in Asia such as Thailand and Malaysia in response to the lost Chinese revenue. It comes after CEO Tim Ford flagged a 5-to-10-year strategy for the company’s push into other Asia ex. China markets back in May.

The article on the company’s continued diversification and offshore push has helped boost the Treasury Wine share price higher on Thursday.

How have the company’s shares been performing?

The Treasury Wine share price slumped last year following China’s tariff announcement. China previously represented a major importer of Treasury Wine products but demand has nosedived due to the increased pricing.

Despite the disruption, the ASX 200 company’s value has managed to recover in recent times. Shares in the Aussie company are up 26.9% in 2021 and 13.9% in the last 12 months.

Today’s gains mean the winemaker’s shares are outperforming the S&P/ASX 200 Index (ASX: XJO), which has gained 0.2% at the time of writing.

The post Treasury Wine (ASX: TWE) share price edges higher amid online sales push appeared first on The Motley Fool Australia.

More reading

• Leading broker names 3 of the best ASX shares to buy in August
• Why the Treasury Wine (ASX:TWE) share price has soared 24% in 2021
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?

Motley Fool contributor Ken Hall 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 owns shares of and 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 Bruce Jackson.

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One of Australia’s leading brokers, Morgans, has released its best ideas for the month of August.

These are the ASX shares the broker believes offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

Three of the ASX shares that Morgans classes as its best ideas are listed below. Here’s what it is saying:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Morgans believes that the ANZ share price is trading at a very attractive level for investors. Especially given its exposure to a number of industry tailwinds and its cost cutting plans.

It explained: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to benefit the most of the major banks from the tailwinds currently in place for treasury and markets income. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years –particularly its institutional loan book –such that the quality of its loan book has increased.”

Morgans has an add rating and $34.50 price target on this banking giant’s shares.

Macquarie Group Ltd (ASX: MQG)

Another ASX share in the banking sector that Morgans likes is Macquarie. This is due to its positive long term outlook thanks to its exposure to infrastructure and renewables.

Morgans commented: “We still see MQG as relatively inexpensive and continue to like its exposure to long-term structural growth areas such as infrastructure and renewables. Near term MQG is likely to face earnings pressures from the impact of soft economic conditions but it remains well positioned to ride out the current COVID-19 period and seize opportunities on the other side.”

Morgans has an add rating and $172.30 price target on this investment bank’s shares.

Treasury Wine Estates Ltd (ASX: TWE)

A new addition to the broker’s best ideas list this month is this wine company. While Morgans believes it will take some time before its lost earnings in China are recovered in new markets, it notes that other sides of the business are performing positively.

Its analysts said: “TWE has the China reallocation risk and it will take 2-3 years to recover these earnings in new markets. However, outside of China, its key markets, particularly the US, are recovering faster than expected from COVID. The new business units centred around the brands, are now fully in place and we are excited to see what they can earn with TWE effectively creating the benefits of a demerger without the extra costs. It also demonstrates that the SOTP [sum of the parts] is worth materially more than the whole. It shines alight on Penfolds and its best-in-class margins and may ultimately lead to corporate activity in some form in the future. We rate this management team highly.”

Morgans has an add rating and $13.00 price target on its shares.

The post Leading broker names 3 of the best ASX shares to buy in August appeared first on The Motley Fool Australia.

More reading

• Should you buy ANZ (ASX:ANZ) shares in August 2021 for the dividend yield?
• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• 2 buy-rated ASX dividend shares with 5%+ yields
• ANZ (ASX:ANZ) and this ASX dividend share offer generous dividend yields
• Macquarie (ASX:MQG) share price underwhelms as Senator fires up on Nuix

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 owns shares of and has recommended Macquarie Group Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has gone on a rollercoaster ride over the last couple of years. However, you may be wondering if you had invested 10 years ago in the airport operators shares, would you be in the green?

No doubt, Sydney Airport has been a hot topic since COVID-19 began in March 2020. The company was once considered a safe and defensive blue-chip share but turned out to be vulnerable during the pandemic.

This is due to Australians being banned from flying internationally, along with severe passenger caps on returning citizens. Interstate borders have also been closed from time to time when there are local COVID-19 outbreaks in population centres.

Quick take on Sydney Airport

Considered as one of the country’s most important infrastructure assets, Sydney Airport is the gateway between Australia and the world.

Before the pandemic, the airport operator was used by 44.4 million passengers, contributing $38 billion in economic activity each year. This is equivalent to roughly 6.8% of the New South Wales economy.

How has the Sydney Airport share price performed in 2021?

Over the last 8 months, Sydney Airport shares have been moving mostly sideways until the company received a takeover proposal. The offer put forward an indicative price of $8.25 cash per Sydney Airport share.

When the news broke out, the Sydney Airport share price flew to a 52-week high of $8.04. Although in the weeks following, the airport’s board unanimously concluded that the proposal undervalues the company. As such, the board recommended it was not in the best interests of shareholders to proceed with the deal.

Since then, Sydney Airport shares have moved slightly lower, following profit taking by investors.

What would be the value of Sydney Airport shares buying from 10 years ago?

If you had parked $2,000 in Sydney Airport shares in 2011, you would have bought them for around $3.07 a piece. This translates to approximately 651 shares without including reinvesting the dividends.

Fast-forward to today, the current Sydney Airport share price is at $7.63. This means that those 651 shares would be worth $4,967.13 (651 shares x $7.63). When looking at percentage terms, this implies an upside of about 148%, or on average a 14.8% yearly return.

Is Sydney Airport share a buy today?

A number of brokers rated the company with similar price points following the takeover proposal.

Macquarie raised its 12-month price target by 41% to $8.50 for Sydney Airport shares. Days after, both JP Morgan and Citi also increase their rating, up 45% and 25%, respectively to $8.25 per share.

The post If you invested $2,000 in Sydney Airport (ASX:SYD) shares 10 years ago, here’s what it would now be worth appeared first on The Motley Fool Australia.

More reading

• Why the Sydney Airport (ASX:SYD) share price will be one to watch
• What’s being overlooked in the Sydney Airport (ASX:SYD) share price?
• Why the Sydney Airport (ASX:SYD) share price is up 34% in a month
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high
• These were the best performing ASX 200 shares in July

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 Bruce Jackson.

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The Westpac Banking Corp (ASX: WBC) share price is struggling to stay in the green today. This follows an update from the Australian Securities and Investments Commission (ASIC) revealing a further $561 million in fee for no service refunds made by ASX-listed financial shares.

At the time of writing, shares in Australia’s oldest bank are relatively flat at $24.87 apiece, up just 0.12%.

The Westpac share price is also underperforming its peers so far today, with Commonwealth Bank of Australia (ASX: CBA) shares currently up by 1.14%. Westpac shares have, however, gained almost 50% over the past 12 months.

It comes at a cost

According to the ASIC release, six of Australia’s largest banking and financial services institutions have paid or offered an additional $561 million in compensation because of fees for no service or non-compliant advice. This includes the big four banks, as well as Macquarie Group Ltd (ASX: MQG) and AMP Ltd (ASX: AMP).

As a result, the total tally paid by the banks has swelled to $1.86 billion as at 30 June 2021. A figure that has been growing since the findings of the Hayne banking royal commission.

The corporate regulator’s update shows that Westpac forked out a further $388.6 million in the front half of 2021. This increase means the bank is second only to NAB for the highest amount of compensation paid, currently pegged at roughly $630 million. Certainly not a podium finish that is doing the Westpac share price any favours today.

Intriguingly, the number of customers slated for compensation from Westpac is nearly one-tenth that of the National Australia Bank Ltd. (ASX: NAB). This means the average compensation claim from Westpac customers is much higher.  

Also not helping the Westpac share price

As we covered earlier today, Westpac’s review of its partnership with Afterpay Ltd (ASX: APT) due to the proposed acquisition of Afterpay by Square (NYSE: SQ) might be weighing on the Westpac share price today.

A banker from Westpac said the company will be “thinking through the strategic implications given Square’s interest in merchant acquiring and business loans”.

The Westpac share price is underperforming the broader S&P/ASX 200 Index (ASX: XJO) today. While the bank’s shares are barely breaking even, the index is up 0.22% in afternoon trade.

The post Westpac (ASX:WBC) share price struggles amid surging customer refunds appeared first on The Motley Fool Australia.

More reading

• Square might crash the Afterpay (ASX:APT) and Westpac partnership
• What is the outlook for the Westpac (ASX:WBC) share price?
• 5 things to watch on the ASX 200 on Thursday
• Westpac (ASX:WBC) share price lower after sale of finance business
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO, Commonwealth Bank of Australia, and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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S&P/ASX 200 Index (ASX: XJO) listed energy shares aren’t having the best of years in 2021.

In fact, of the 10 energy shares listed on the ASX 200, 4 are in the red with only 6 seeing their share price gain this calendar year.

For some perspective, the ASX 200 itself has gained 12.5% this year-to-date.

With that said, we take a look at the best and worst performing energy shares, starting with the underperformer…

The worst performing energy share in 2021

Trailing the pack of ASX 200 energy shares is oil and gas producer Beach Energy Ltd (ASX: BPT). Beach Energy’s share price is down 34% year-to-date, currently trading at $1.21 per share.

By far the biggest issue to impact the share price this year was the disappointing third quarter results released on 30 April.

In its Q3 financial results, the company reported its production had fallen 5% quarter-on-quarter and was down 15% year-on-year. Citing reductions at its Western Flank project, Beach also withdrew its 5-year outlook. Shares closed down 24% on the day.

At the current share price Beach Energy has a market capitalisation of $2.8 billion. It pays a dividend yield of 1.62%, fully franked.

Moving on…

The best performing ASX 200 energy share

The best performer of 2021 is Whitehaven Coal Ltd (ASX: WHC), the biggest pure play coal miner on the ASX 200.

And here we were being told coal was history!

Whitehaven’s shares have gained 27% year-to-date with a big turnaround for the positive in the middle of May.

In fact, shares leapt 23% higher in May, accounting for much of the 2021 gains. May’s strength was largely driven by a surging coal price, which went from US$90 at the beginning of the month to US$109 by the end of the month.

Additionally, May also saw Whitehaven win a federal court stoush over its Vickery Extension Project.

At the current share price of $2.11, the ASX 200 energy share has a market cap of $2.2 billion. Whitehaven Coal pays an unfranked dividend yield of 0.83%.

The post Here are the best and worst performing ASX 200 energy shares of 2021 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Why Altium, Beach, Domino’s, & Piedmont Lithium are tumbling lower
• The Beach Energy (ASX:BPT) share price wobbles after quarterly update
• 5 things to watch on the ASX 200 on Wednesday

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 Bruce Jackson.

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Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

BWP Trust (ASX: BWP)

According to a note out of UBS, its analysts have retained their sell rating and $3.86 price target on this Bunnings-focused commercial property company’s shares. This follows the release of BWP’s full year results earlier this week. While the company’s result was largely in line with expectations, UBS has concerns over its growth in the coming years. The broker suspects that it could experience a larger than normal amount of lease non-renewals over the next five years. The BWP share price is fetching $3.97 this afternoon.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this banking giant’s shares to $81.87. Goldman is expecting Australia’s largest bank to deliver a strong full year result next week and suspects that a $2.00 per share special dividend could be declared. However, this isn’t enough for a change of rating. It continues to believe its shares are overvalued and better value can be found elsewhere in the sector. The CBA share price is trading at $103.12.

Reece Ltd (ASX: REH)

Analysts at Morgan Stanley have commenced coverage on this plumbing parts company’s shares with an underweight rating and $16.40 price target. Although the broker is a fan of Reece and believes it is a high quality company, it isn’t a fan of its valuation. It believes the current share price is unsustainable and the risk is firmly to the downside. Morgan Stanley estimates that its shares are trading at over 50x full year earnings. The Reece share price is fetching $23.98 today.

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

More reading

• How did the CBA (ASX:CBA) share price perform in July?
• ASX 200 rises, BWP Trust falls, Genworth soars
• BWP (ASX:BWP) share price tumbles after FY 2021 results
• FY 2021 results preview: Is the CBA (ASX:CBA) share price good value?
• Here are 3 dipping ASX shares now ready to rally

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 Bruce Jackson.

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