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The economics team at Westpac Banking Corp (ASX: WBC) have been busy factoring in recent data into their estimates and have made some sweeping changes to their forecasts.

The key one being when it believes the Reserve Bank of Australia will begin to lift the cash rate at long last.

What did Westpac say?

According to the latest Westpac Weekly, the bank’s Chief Economist, Bill Evans, believes the recent reduction in Australia’s unemployment level has been a game changer.

Mr Evans commented: “The May employment report is a major ‘game changer’ for policy. It underscores the strength of momentum in the economy and endorses the range of other measures pointing to a very strong labour market. The recovery is now clearly into a self-sustaining upswing and the need for emergency stimulus policies has eased significantly.”

In light of this and comments out of the US Federal Reserve last week, the broker believes that wider economic risks from COVID-19 have eased and policy normalisation can be brought forward.

Furthermore, the Chief Economist doesn’t believe May’s unemployment report was a one-off and has now brought forward his estimates accordingly.

He explained: “With the starting point for the unemployment rate now at 5.1% rather than the 5.5% we had previously expected for May 2021 we now forecast that the unemployment rate will reach 4.0% by June 2022 and will drift down through the second half of 2022 to reach 3.8% by year’s end.”

This is important because the bank believes that 4% is “full employment” and expects the Reserve Bank to have a similar view.

Mr Evans added: “Reaching full employment much earlier than previously expected points to upward pressure on both inflation and wages growth. We now expect underlying inflation to reach 2.25% and wages growth to reach 2.75% by December 2022.”

Monetary policy implications

As a result of the above, Westpac now expects Australia’s economy to be in a position to have its first interest rate hike much earlier than anticipated.

Evans explained: “We now expect that the RBA will assess that it has achieved the conditions necessary for the first interest rate hike by the first quarter of 2023. We expect an increase of 15 basis points in Q1; to be followed by 25 basis points in Q2; and 25 basis points in Q4.”

“That would restore the cash rate to 75 basis points by end 2023, in effect reversing the ‘emergency’ rate cuts in 2020 when the RBA responded to the COVID crisis,” he added.

Though, based on these estimates, it may be a while until rates return to normal levels again. This could mean that dividend shares remain the best place for income investors to generate a passive income for a little while to come.

The post Westpac (ASX:WBC) brings forward RBA rate hike forecasts appeared first on The Motley Fool Australia.

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James Mickleboro owns Westpac shares. 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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If you’re looking to bolster your portfolio with some dividend shares, then you might want to take a look at the ones listed below.

Here’s why these dividend shares are highly rated:

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share to look at is this banking giant. Although the NAB share price has been on fire this year, it may not be too late for income investors to jump in. That’s the view of analysts at Goldman Sachs, who have a buy rating and $29.97 price target on the company’s shares.

NAB remains Goldman’s preferred sector exposure. This is due to the bank’s cost management initiatives, its position as the largest business bank, and its strong capital position.

Goldman is also forecasting some attractive dividends from the bank in the near future. The broker is expecting NAB to pay fully franked dividends of 124 cents per share in FY 2021 and then 133 cents per share in FY 2022.

Based on the current NAB share price of $26.87, this will mean yields of 4.6% and 4.95%, respectively.

Scentre Group (ASX: SCG)

Another dividend share that Goldman Sachs is positive on is Scentre. The broker is particularly positive on Scentre due to Australian inflation expectations.

Goldman notes that expectations are currently at their highest level since 2015, which is good news for Scentre. This is due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under its coverage.

The broker estimates that 70%+ of its base rental income is subject to inflation-linked escalation. Goldman also notes that higher inflation aids the profitability of its retailer tenancy base, which benefits from fixed cost leverage.

Its analysts are forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Which, based on the latest Scentre share price of $2.86, will mean yields of 4.9% and 5.9%, respectively.

The post 2 excellent ASX dividend shares rated as buys appeared first on The Motley Fool Australia.

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• Did CBA (ASX:CBA) just make it harder to get a home loan?
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• Why Telstra (ASX:TLS) and this ASX dividend share could be buys
• NAB and Zip were among the most traded ASX shares last week
• Is Westpac’s (ASX:WBC) life insurance approaching its sell-by date?

James Mickleboro does not own any shares 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished another positive week with a small gain. The benchmark index rose 0.1% to 7,368.9 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 is expected to start the week deep in the red this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 111 points or 1.5% lower. This follows a very poor end to the week on Wall Street, which saw the Dow Jones drop 1.6%, the S&P 500 fall 1.3%, and the Nasdaq tumble 0.9% lower.

Oil prices rebound

It could be a positive start to the week for energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices rebounded on Friday. According to Bloomberg, the WTI crude oil price rose 0.85% to US$71.64 a barrel and the Brent crude oil price rose 0.6% to US$73.51 a barrel. Traders were buying oil after OPEC sources said the cartel expected limited U.S. oil output growth this year despite rising prices.

Gold price falls

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch today after the gold price fell again on Friday night. According to CNBC, the spot gold price dropped 0.3% to US$1,769.00 an ounce. The precious metal had its worst week in over a year after the US Federal Reserve brought forward its rate hike plans.

PointsBet rated as a buy

The Pointsbet Holdings Ltd (ASX: PBH) share price is great value according to analysts at Goldman Sachs. This morning the broker has reiterated its buy rating and $17.20 price target on the sports betting company’s shares. After holding a virtual meeting with management, Goldman remains confident in its growth prospects.

Iron ore price softens

BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares could come under pressure today after the iron ore price softened. According to Metal Bulletin, the spot iron ore price fell 0.9% to US$218.90 a tonne.

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

More reading

• 2 ASX 200 shares that might be buys for growth
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• 3 things that might happen to ASX shares if inflation returns

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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 two S&P/ASX 200 Index (ASX: XJO) shares in this article that could be ideas for growth.

Businesses that are producing profit growth give themselves a chance of generating shareholder returns.

These two could be options to consider:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is a funds management business that is focused on global equity investing strategies for investors.

It currently manages around $110 billion of money. In the first half of FY21, its average funds under management (FUM) was up 9%. This drove half-year management and services fees revenue up 8% to $311.4 million. Profit before tax and performance fees of the funds management business grew 8% to $256.2 million.

Higher FUM means can mean the business can earn more management fees and profit.

The ASX 200 business is producing more FUM growth with its Magellan FuturePay product where investors have built up a capital amount and want to receive regular and predictable income that grows with inflation without eating into the capital base. It will invest in high quality global shares and global listed infrastructure. FuturePay comes with a support trust that will provide income support in falling markets.

Magellan has also been investing in external businesses itself that will provide returns whilst also contributing to the intellectual property of the funds management.

It’s currently rated as a buy by the broker Morgans with a price target of $58.26. Magellan is valued at 21x FY22’s estimated earnings according to Morgans.

Premier Investments Limited (ASX: PMV)

Premier Investments is one of the largest retailers on the ASX with a market capitalisation of $4.45 billion according to the ASX.

It owns a number of different clothing retailers including Just Jeans, Jay Jays and Peter Alexander. Premier Investments also owns the Smiggle brand. Plus, it has a shareholding of Breville Group Ltd (ASX: BRG) that’s worth just over $1 billion.

The business is expecting to grow its FY21 underlying earnings before interest and tax (EBIT) by between 82% to 92% to a range of between $340 million to $360 million.

Premier Investments said it’s seeing strong online sales growth and “highly profitable” online performance. It has also seen “exceptional” gross margin expansion in the second half of FY21, up 380 basis points.

The ASX 200 share also said that it has a strong cost culture including continuing to reach agreements with landlords that have rebased the company’s rent expense.

One of the main areas for growth that Premier Investments is focused on is Smiggle, which it called a powerful global brand set to rebound and grow, particularly as it recovers from COVID-19 impacts.

The ASX 200 company said that Smiggle has been strategically positioned for maximum EBIT growth as sales rebound.

Premier Investments also pointed to its decision to invest in its distribution centre which has allowed it to scale up its online fulfillment in response to the huge demand, which provided the company with “significant operating leverage”. Plans have commenced to expand this facility during the 2022 calendar year.

According to Commsec, it’s valued at 23x FY22’s estimated earnings.

The post 2 ASX 200 shares that might be buys for growth appeared first on The Motley Fool Australia.

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• 3 ASX ETFs that could give investors easy exposure to the US markets
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Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. 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 Premier Investments 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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There are a number of companies in the tech sector that are expected to grow at a strong rate in the future.

Two that you might want to get better acquainted with are listed below. Here’s what you need to know about them:

Nearmap Ltd (ASX: NEA)

The first ASX tech share to look at is Nearmap. It is an aerial imagery technology and location data company.

Nearmap’s aerial imagery and data insights shift location analysis out of the field and into the office. Management notes that this provides businesses with the tools to scale quickly and bring their most important initiatives to life.

Although there has been a few bumps on the road, Nearmap has overall been growing at a strong rate over the last few years. This has been driven by increasing demand for its services in the ANZ and North American markets. Looking ahead, management appears confident in its growth trajectory. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

Morgan Stanley remains bullish on the company despite its legal issues. It currently has an overweight rating and $3.20 price target on its shares. This compares to the latest Nearmap share price of $1.92

Whispir Ltd (ASX: WSP)

Another tech share to look at is Whispir. It is a software-as-a-service communications workflow platform provider. This platform allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.

Demand for Whispir’s platform has been growing strongly over the last few years and has continued in FY 2021. For example, its recent third quarter update revealed that its annualised recurring revenue (ARR) was up 20.3% over the prior corresponding period to $50.3 million. This was driven by continued growth in customers and increased usage. Pleasingly, this is still well short of its total addressable market (TAM) opportunity. Management estimates that it has a TAM of US$4.7 billion in just United States.

And with the company recently raising significant capital, it is well-funded to accelerate and execute its growth strategy and capture a growing slice of this market.

Ord Minnett is very positive on the company’s prospects. The broker currently has a buy rating and $4.25 price target on its shares. This compares to the latest Whispir share price of $2.84.

The post 2 exciting ASX tech shares that have been named as buys appeared first on The Motley Fool Australia.

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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 and has recommended Nearmap Ltd. and Whispir Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Whispir 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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If small caps are a little too risky for your liking, then maybe mid cap ASX shares would be more suitable. These are often well-established companies that still have significant runways for growth ahead of them.

With that in mind, I have picked out two mid cap ASX shares that are rated highly. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

Life360 is a $980 million San Francisco-based app maker. It is on a mission to bring families closer and believes ensuring that loved ones are safe and secure is the place to start.

Its app is currently used by 28 million monthly active users globally. They are taking advantage of important solutions such as real-time location sharing and notifications, and driver safety features such as crash detection and roadside assistance.

Life360 has also just strengthened its offering with the acquisition of Jiobit for US$37 million. Management notes that the addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.

Credit Suisse is very positive on the company’s prospects. The broker currently has an outperform rating and $8.30 price target on its shares. It sees plenty of opportunities for the company to further monetise its huge user base.

MNF Group Ltd (ASX: MNF)

MNF is a $460 million communication software company. It develops and operates a global communications network and software suite that allows some of the world’s leading innovators to deliver new-generation communications solutions. This includes the likes of Google, Twilio, and Zoom.

It has been growing at a solid rate over the last decade and appears well-positioned to continue this positive form over the next decade. This is thanks to a number of tailwinds, such as the work from home trend, and its international expansion. In respect to the latter, the company is due to launch in Singapore at the start of next month and is conducting due diligence in other Asia-Pacific markets.

In addition to this, the company has just signed an agreement to sell part of its Direct business for $31 million. This is expected to simplify the business, grow recurring revenues, and allow management to focus on growing the MNF wholesale business, Symbio. It will also provide funds to make potentially value accretive acquisitions.

Morgan Stanley is a fan of the company and remains positive on its long term growth prospects. Earlier this month it put an overweight rating and $6.30 price target on its shares.

The post 2 excellent mid cap ASX shares rated as buys appeared first on The Motley Fool Australia.

More reading

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MNF Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia owns shares of and has recommended MNF 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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Although the Australian share market is at a record high, that doesn’t mean there aren’t any decent dividend yields out there.

Two blue chip ASX dividend shares that offer investors attractive yields are listed below. Here’s why analysts think they are in the buy zone for income investors at the current level:

Coles Group Ltd (ASX: COL)

The first blue chip ASX dividend share to consider is this supermarket giant. It could be a top option for investors due to its defensive qualities, strong market position, and solid long term growth prospects. The latter is being underpinned by its investments in its online business, distribution, and automation.

Last week analysts at Morgan Stanley responded to Coles’ strategy update by putting a buy rating and $19.00 price target on its shares.

The broker is also forecasting fully franked dividends of 57 cents per share in FY 2021 and then 59 cents per share in FY 2022. Based on the latest Coles share price of $16.36, this will mean yields of 3.5% and 3.6%, respectively, over the next two years.

Telstra Corporation Ltd (ASX: TLS)

Another blue chip ASX dividend share to consider is this telco giant. It could be a good option due to its improving outlook, attractive valuation, and generous yield. The former is being driven by the company’s successful T22 strategy, the easing NBN headwind, and its leadership position in the lucrative 5G internet market.

And although the Telstra share price has just hit a 52-week high, Goldman Sachs still sees a lot of value in it. A recent note reveals that its analysts have retained their buy rating and $4.00 price target on its shares.

Goldman is expecting Telstra to continue to pay fully franked dividends of 16 cents per share for the foreseeable future. Based on the latest Telstra share price of $3.57, this will mean yields of 4.5%.

The post 2 more blue chip ASX dividend shares appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• The Coles (ASX:COL) share price could be heading to a record high
• Here are the 3 most traded ASX 200 shares today
• Latest ASX shares to be hit by a broker downgrade today
• Brokers name 3 ASX shares to buy today

James Mickleboro does not own any shares 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 COLESGROUP DEF SET and Telstra Corporation 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

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

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company’s shares. The broker has been looking at the pending launch of Afterpay Money. Morgan Stanley sees a lot of positives in the product and suspects it could add almost $600 million to its local revenue by FY 2025. It also believes the offering could reduce payment processing costs significantly and increase customer engagement. The Afterpay share price ended the week at $114.40.

Coles Group Ltd (ASX: COL)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating but trimmed their price target on this supermarket giant’s shares to $19.00. The broker made the move in response to Coles’ strategy update last week. Although the supermarket operator’s capital expenditure and depreciation forecasts were higher than expected, leading to a reduction in the broker’s earnings estimates, it still believes its shares are great value at the current level. The Coles share price was fetching $16.36 at the end of last week.

SEEK Limited (ASX: SEK)

Analysts at Macquarie have upgraded this job listings company’s shares to an outperform rating and lifted their price target on them materially to $40.00. According to the note, the broker expects SEEK to benefit greatly from the removal of ad discounts. In addition to this, with the broker forecasting a sharp drop in the unemployment rate over the next two years, it feels SEEK is well-placed to profit from increasing ad volumes. The SEEK share price ended the week at $33.16.

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

More reading

• 2 more blue chip ASX dividend shares
• The Coles (ASX:COL) share price could be heading to a record high
• Latest ASX shares to be hit by a broker downgrade today
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James Mickleboro owns SEEK shares. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and COLESGROUP DEF SET. The Motley Fool Australia has recommended SEEK 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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We ASX investors love our Australian shares. And fair enough too. The S&P/ASX 200 Index (ASX: XJO) has been a great place historically to find great companies to invest your money into for long-term gains. However, like any index, the ASX 200 isn’t perfect. It’s heavy on ASX banks and miners, and light on tech companies. At least where it counts: market-capitalisation weighting.

That’s where the US markets can come in handy. Not only is America home to some of the best companies in the world such as Apple Inc (NASDAQ: AAPL). it also offers ASX investors some exposure to trends and sectors that the ASX 200 just can’t.

So here are 3 ASX exchange-traded funds (ETFs) that have the potential to easily expose any ASX investor’s portfolio to the US markets.

3 ASX ETFs that can offer ASX investors easy US markets exposure

iShares S&P 500 ETF (ASX: IVV)

Here we have a simple, cheap US-based index fund. The S&P 500 Index (INDEXSP: .INX) is one of the largest and most-tracked index in the world. It holds 500 of the largest companies in the US. That’s everything from Apple and Microsoft Corporation (NASDAQ: MSFT) to Ford Motor Company (NYSE: F) and Adobe Inc (NASDAQ: ADBE). This is the index that IVV tracks. This ETF has been an objectively solid performer over the past 10 years, returning an average of 17.93% per annum. it also has one of the lowest management fees of any ETF on the ASX at 0.04% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another US-based index fund here. But instead of the S&P 500, NDQ tracks the Nasdaq-100 (INDEXNASDAQ: NDX). This index is a little different, holding only the companies that list on the Nasdaq exchange. The Nasdaq is one of the major stock exchanges in the US, but it’s a lot newer than its main rival the New York Stock Exchange. As such, it tends to house mostly tech companies. It’s largest holdings are Apple, Microsoft, and other tech giants like Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Facebook Inc (NASDAQ: FB) and Netflix Inc (NASDAQ: NFLX).

NDQ charges a management fee of 0.48% per annum, and has retuned an average of 20.94% per annum since its inception in 2015.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is a little different from the above examples as it is not an index fund. Rather, it can be described as an ‘active ETF’. That’s because it invests in companies that meet certain criteria – that of a wide economic moat. VanEck works with Morningstar to identify a concentrated portfolio of at least 40 US shares that show signs of a ‘wide moat’.

‘Moat’ is a Warren Buffett term that describes a company’s intrinsic competitive advantage. This can be in a powerful brand, cost advantage or other factors that enable a company to stay on top of its competition. Some of MOAT’s top holdings include Pfizer Inc. (NYSE: PFE), Boeing Co (NYSE: BA) and Buffett’s own Berkshire Hathaway Inc. (NYSE: BRK.A)(NYSE: BRK.B). MOAT charges a management fee of 0.49% per annum. It has returned an average of 20.38% per annum since its inception in 2015.

The post 3 ASX ETFs that could give investors easy exposure to the US markets appeared first on The Motley Fool Australia.

More reading

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• Streaming’s easy-growth days are over, Apple and Netflix face greatest risk
• These were the best-performing ASX 200 shares last week
• These were the worst-performing ASX 200 shares last week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Boeing, Facebook, Ford, Pfizer, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, BETANASDAQ ETF UNITS, Berkshire Hathaway (B shares), Facebook, Microsoft, and Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Systems and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Systems, Alphabet (A shares), Alphabet (C shares), Apple, Berkshire Hathaway (B shares), Facebook, Netflix, VanEck Vectors Morningstar Wide Moat ETF, and iShares Trust – iShares Core S&P 500 ETF. 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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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 caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $70.71 price target on this pizza chain operator’s shares. The broker notes that Domino’s has signed an agreement to acquire the Domino’s Taiwan business. While it sees opportunities for the company to grow its store network materially in the country, it isn’t enough for a change of rating. With the acquisition expected to be just 2% earnings per share accretion, Credit Suisse continues to believe that its shares are overvalued. The Domino’s share price ended the week at $120.67.

Fortescue Metals Group Limited (ASX: FMG)

Analysts at Morgans have retained their reduce rating and $18.80 price target on this iron ore producer’s shares. According to the note, the broker believes there are early signs of moderation in respect to demand. Which could be bad news for the company, as it feels Fortescue is the most sensitive to falling iron ore prices. Overall, it feels is valuation is stretched and outweighs the attractiveness of its huge dividend yield. The Fortescue share price was fetching $22.42 at the end of last week.

InvoCare Limited (ASX: IVC)

A note out of Citi reveals that its analysts have downgraded this funerals company’s shares to a sell rating and cut the price target on them to $10.00. Citi notes that InvoCare has lost meaningful market share over the last five years despite spending almost half a billion on acquisitions and capital expenditure. It doesn’t appear to believe things will improve in the near term and has downgrade its earnings estimates meaningfully out to FY 2023. The InvoCare share price end the week at $11.39.

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

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• Leading brokers name 3 ASX shares to sell today

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 ZIPCOLTD FPO. 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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