Tag: Motley Fool

The Challenger Ltd (ASX: CGF) share price has had a solid run in the last 6 months, rising by 35%. This comes after the investment manager lost almost a third of its value in March, when the Challenger share price fell by as much as 65%.

Let’s take a look at the company’s prospects and the challenges it may face this year.

First, what’s been driving the Challenger share price?

Challenger has two main businesses – the annuities business through Challenger Life, and funds management business consisting of Fidante Partners and Challenger Investment Partners.

Challenger Life’s sales amount to roughly 90% of yearly annuity sales in Australia, while its investment fund products are represented on platforms used by more than 70% of Australia’s financial advisors.

The Challenger share price has staged a significant comeback in the second-half of 2020, since plummeting to its 52-week low of $2.82 in March.

In its update for the quarter ending September 2020, the company revealed that assets under management (AUM) for its annuity business increased 4% for the quarter to $89 billion.

In the latest earnings update announced last week, the company also reported that it expected normalised net profit after tax (NPAT) to be within its guidance range of $390 million to $440 million.

Challenges and tailwinds in 2021

The company is still recovering from the disruption to its financial advisor distribution channel due to the Financial Services Royal Commission, historic low interest rates, as well as COVID-19 impacts.

The annuity business in particular, has seen massive pressure from low interest rates, which are likely to stay low for the foreseeable future. Low interest rates normally discourage investors from buying into annuities.

It also faces continuing market risk management challenges in the annuity business. The annuities portfolio has an inherent mismatch risk in that its liabilities are fixed, while its investments are subject to volatile market movements such as the one we saw in 2020. This could impair its obligations to pay to annuitants, considering returns are guaranteed.

However, a strong tailwind might be coming its way in the form a regulatory change. 

The Australian Government is in the process of formulating the comprehensive income product for retirement (CIPR) laws, which will require super fund trustees to develop a retirement product with a stable and regular income stream. This will come into law on 1 July 2022, and will bode well for Challenger’s annuities business.

The company has also said that its focus in 2021 is to capture an increasing portion of the $70 billion in funds shifting into the Australian post-retirement segment each year.

To achieve this, the company said it will focus on expanding its distribution channels that were less scathed by the Royal Commission; such as independent advisors, specialty platforms, as well as expanding overseas.

As an example, it has partnered with MS Primary to sell AUD-denominated and USD-denominated annuities into Japan.

About the Challenger share price

As mentioned, the Challenger share price has gained 35% over the last 6 months, but is down 25% for the year. 

The direction of its share price heading into 2021 may depend on how well it can manage its portfolio through the volatile market. And whether it can execute its expansion platform to reach more investors.

The Challenger share price was down 2.93% at $6.29 at close of trade today.

More reading

• These were the best performers on the ASX 200 last week
• ASX 200 ends 0.7% higher
• Why the Challenger (ASX:CGF) share price is one to watch today
• Top brokers name 3 ASX shares to buy today
• How to protect your super fund when you’re approaching retirement

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Challenger (ASX:CGF) share price is up 35% in 6 months. Can it continue its form in 2021? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38YJl9H

It is worth remembering that all companies start somewhere and don’t become blue chips overnight.

Two ASX shares that are at the start of their journeys and growing fast are listed below. Here’s what has investors watching them closely:

Damstra Holdings Ltd (ASX: DTC)

Damstra is a growing integrated workplace management solutions provider. Its cloud-based workplace management platform is used by businesses across numerous industries to track, manage, and protect their workers and assets.

The company also offers solutions which are proving very appropriate in the current COVID climate such as fever detection and mobility tracking. Management isn’t resting on its laurels, though. It recently strengthened its product portfolio with the acquisition of Vault Intelligence. It provides solutions which combine health, safety, compliance, and risk management. 

Demand for Damstra’s offering has been growing strongly in FY 2021. This led to the company reporting first quarter revenue of $5.2 million, up 34% on the prior corresponding period. Its cash receipts grew even quicker and were up 61% on the prior corresponding period to $7.1 million.

Analysts at Morgan Stanley were pleased with its first quarter performance and reiterated their overweight rating and $2.00 price target.

Whispir (ASX: WSP)

Another growing small cap share is Whispir. It is a software-as-a-service communications workflow platform provider which automates communications between businesses and their workers and customers.

It was a very strong performer in FY 2020. For the 12 months ended 30 June 2020, it posted a 25.5% increase in revenue to $39.1 million and annualised recurring revenue (ARR) growth of 34% to $42.2 million. Pleasingly, its positive form has continued in FY 2021, with the company’s ARR lifting to $43.7 million at the end of September.

The good news for the company and its shareholders is that Whispir still has a significant runway for growth over the next decade.

Management currently estimates that the Workflow Communications platform as a Service market will be worth US$8 billion per year by 2024. This means it currently only has a ~0.5% slice of this market.

More reading

• 2 exciting ASX mid cap tech shares to buy in 2021
• 3 ASX shares to buy for 2021 and beyond
• 3 small cap ASX shares that could have a big 2021
• 5 exciting small cap ASX shares to watch in 2021
• 2 exciting small cap ASX tech shares to buy

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 recommends Damstra Holdings Ltd and Whispir Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 exciting small cap ASX shares growing fast appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rOICAx

Douugh Ltd (ASX: DOU) is reportedly set to announce it will acquire Australian ethical investing app Goodments.

The fintech, which listed on the ASX in October, returned 467% to be crowned the best-performing initial public offer stock of 2020.

The shares sold for 3 cents during the IPO but last traded for 17 cents, after flying as high as 49 cents.

However, the rollercoaster ride for investors came to an abrupt pause on 21 December when the company put a trading halt on its shares. It has since extended the suspension 3 times, making everyone a bit nervous.

The trading halt, Douugh had stated, was regarding the acquisition of an undisclosed company and an enquiry from the ASX.

Now with the shares still suspended, the Australian Financial Review has revealed startup Goodments is Douugh’s acquisition target.

Goodments is a share trading app that allows users to only invest in ethical companies aligned with the user’s personal priorities.

A share trading app for the new generation

The app’s co-founder Tom Culver told the author back in 2017 that the despair he felt about the Tony Abbott federal government convinced him there was a need for such a platform.

“I realised that governments don’t see themselves accountable for the future of our planet and actually it’s corporations who are the most incentivised to behave more sustainably,” he told Business Insider.

The startup then went through the famous H2 Ventures accelerator program, targeting millennials.

Douugh has had a controversial 3 months on the ASX. While its soaring share price has made IPO investors very happy, the uncertainty of its long-term business has seen the value violently fluctuate.

The company scored a major win back in November, revealing a partnership with Humm Group Ltd (ASX: HUM). But it also raised an unannounced $12 million soon after the IPO, which raised questions from the ASX.

The company has also so far refused to divulge customer numbers.

Douugh shares will remain in a trading halt until Friday, unless it is ready to reveal the news earlier.

More reading

• What is happening with the Douugh (ASX:DOU) share price?
• These were the best-performing ASX IPOs in 2020
• Here are 6 of the top performing ASX fintech shares of 2020
• Experts pick the best ASX IPO of 2020
• You might have missed these top performing ASX IPOs of 2020  

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Douugh (ASX:DOU) to acquire Goodments: report appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rPPn5b

The tech sector was on form again last year and outperformed the market average. Given the quality on offer in the sector, I don’t think this is surprising.

Whether or not this positive trend will continue in 2021, only time will tell. But two tech shares that have been tipped as potential market beaters are listed below. Here’s why they could be in the buy zone:

Appen Ltd (ASX: APX)

The first tech share to look at is Appen. It is the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence. As these markets are growing rapidly in size and importance, demand for its services is expected to increase very strongly in the coming years. 

And while the pandemic is putting a dampener on things in FY 2021, management appears confident that demand will accelerate once the crisis passes and its strong form will resume.

According to a recent note out of Citi, its analysts have a buy rating and $32.60 price target on the company’s shares. This compares to the latest Appen share price of $24.91. The broker remains very positive on its long term growth prospects and appears to believe its recent share price weakness is a buying opportunity.

Jumbo Interactive (ASX: JIN)

Another tech share to consider is Jumbo Interactive. It is an online lottery ticket seller and best-known as the operator of the Oz Lotteries website.

While the Oz Lotteries website is easily the biggest contributor of revenue at present, this looks set to change in the future. This is due to the company’s Powered by Jumbo SaaS business, which is expected to be the key driver of growth over the 2020s.

Management notes that this business is in a strong position to benefit from the shift online of lotteries globally. It estimates that it has a US$303 billion global total addressable market, with just 7% of this market online at the moment.

Analysts at Goldman Sachs are positive on the company. The broker has an overweight rating and $14.50 price target on the company’s shares.

More reading

• ASX 200 up 0.8%: CBA storms higher, Link sinks, tech shares rise
• Fundie names 5 ASX shares with good growth prospects
• 4 of the best ASX shares to buy in 2021
• Here’s how the S&P/ASX All Technology Index fared in 2020
• 2 explosive ASX growth shares to buy for 2021

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 Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 2 ASX tech shares to buy in January appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oeKosw

The IMEXHS Ltd (ASX: IME) share price soared today following a positive sales update for its Aquila in the Cloud product.

At the time of writing, the company is trading 6.94% higher at $1.85 per share.

What did IMEXHS announce?

The IMEXHS share price is outperforming the All Ordinaries Index (ASX: XAO) today.

According to its release, IMEXHS advised that its standardised radiology solution, Aquila in the Cloud, has ended the year on a strong note.

For the period ending 31 December 2020, the company’s product saw a total of 41 contracts signed. This is expected to translate to more than $945,000 in annual recurring revenue (ARR) for the company.

Launched last May, Aquila in the Cloud is an affordable and accessible product that improves patient outcomes in imaging diagnosis and treatment.

Hosted within Microsoft Azure, healthcare providers pay a connection and establishment fee for the software service. This allows access to the advanced imaging tools on a fee per study basis, helping to reduce overall costs.

IMEXHS customers include small-to medium-sized customers across 11 markets including the United States, Mexico, Central America, and Columbia.

Management commentary

IMEXHS co-founder and CEO Dr German Arango commented on the result:

The strong demand we are experiencing in multiple markets for Aquila in the Cloud reflects the gap which exists for a low-cost radiology solution that meets the needs of small to mid-size operators. Our affordable product offering provides us with a unique opportunity to democratise access to medical imaging which is currently not available to around two-thirds of the world’s population. At IMEXHS, we firmly believe that Aquila in the Cloud represents an important step forward to improving the health outcomes of communities across the globe.

About the IMEXHS share price

The IMEXHS share price has been on a rollercoaster ride over the past 12 months. The company’s shares reached a high of $2.55 last January, before falling to a multi-year low of 75 cents in March.

Based on the current IMEXHS share price, the company commands a market capitalisation of around $51 million.

More reading

• Why the DroneShield (ASX:DRO) share price is surging higher
• Here are the best All Ordinaries performers of 2020
• How does fiscal stimulus impact ASX share prices?
• Why the New Energy Solar (ASX:NEW) share price is climbing higher today
• As we bid farewell to 2020, don’t miss this lesson…

Motley Fool contributor Aaron Teboneras 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.

The post Why the IMEXHS (ASX:IME) share price soared 6% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pQRGTG

The S&P/ASX 200 Index (ASX: XJO) dropped 0.03% today to 6,682 points.

Here are some of the highlights from the ASX:

Nick Scali Limited (ASX: NCK)

The Nick Scali share price went up by around 6.3% after upgrading its profit guidance for the first half of FY21 again.

Unaudited net profit after tax for the six months to 31 December 2020 is expected to be $40.5 million, which is up approximately 100% compared to the underlying profit of the prior corresponding period. This was due to better than previously anticipated container availability during the months of November and December leading to increased delivery volumes.

A couple of months ago Nick Scali provided a trading update on 26 October 2020 showing that total written sales orders for the first quarter of FY21 grew by 45%.

In the second quarter of FY21 Nick Scali achieved growth of 58%, which was driven by the reopening of the Melbourne metropolitan stores as well as a successful Black November campaign across both the online and in-store channels.

Total written sales orders for the six months to 31 December 2020 exceeded delivered sales by approximately $20 million according to the company due to exceptional growth in written sales orders during the second quarter. Management said that the sales order book was at an all-time high at 31 December 2020 and this is expected to translate to material revenue and profit growth in the second half of the financial year, subject to there being no further disruption to the store network or supply chain.

During the month of November, Nick Scali opened new stores in Wairau Park in Auckland, New Zealand and Bennetts Green in NSW which have both performed strongly and are expected to contribute to profit in the second half of FY21 as written sales orders convert to revenue. Despite the entire store network being reopened at the end of October, sales made through digital channels continued to growing during the second quarter of FY21.

Ramelius Resources Limited (ASX: RMS)

ASX 200 gold miner Ramelius Resources saw its share price rise by 3.6% today after announcing the production for the three months to December 2020.

Ramelius Resources’ guidance for quarterly gold production had been 67,000 ounces to 72,000 ounces. It achieved 72,896 ounces of production. This was split with 43,055 ounces of production from Mt Magnet (including Vivien) and 29,841 ounces from Edna May (including Marda).

Half-year gold production guidance had been 132,000 ounces to 142,000 ounces. It achieved half-year production of 144,240 ounces.

Management said that it finished the quarter with $221.5 million of cash and gold on hand. Debt reduced to $8.1 million at the end of the quarter. It ended with a net cash position of $213.4 million.

Ramelius Resources said that it continues to deliver gold into its forward sales book as the current schedule requires, with a quarter end position of 229,750 ounces at an average price of AU$2,288 per ounce.

Dacian Gold Ltd (ASX: DCN)

The Dacian Gold share price dropped 1% after announcing its preliminary December update.

For the quarter ending 31 December 2020, it achieved production of 27,162 ounces and year to date production of 59,961 ounces. This production is “tracking well” for its guidance of 110,000 ounces to 120,000 ounces.

During the latest quarter the company repaid $15.7 million in debt during the quarter, with total debt now standing at $23.4 million.

Cash and gold on hand at 31 December 2020 was $37.9 million for a net cash and gold position of $14.5 million. This was a $15.1 million improvement from 30 September 2020.

More reading

• Citi sees bigger takeover offer coming for Coca-Cola Amatil (ASX:CCL) share price
• Investors caught in crossfire as ASX retailers battle ASX property stocks in 2021
• Why Dacian Gold, Lovisa, MyFiziq, & Zip shares are dropping lower
• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks
• Why BHP, Cann, Nick Scali, & Ramelius shares are pushing higher

Motley Fool contributor Tristan Harrison 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.

The post ASX 200 falls on Tuesday appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3osj4H2

The Veem Ltd (ASX: VEE) share price hit an all-time high in afternoon trade today after the company released a positive sales update.

The Veem share price climbed to a record high of 88 cents but has since retreated to 84.5 cents as it nears close of trade today.

Based in Perth, Western Australia, Veem designs and manufactures marine propulsion and stabilisation systems for global luxury motor yacht, fast ferry, commercial workboat and defence sectors.

The company’s market leading gyrostabilisers (gyros) significantly reduce the rolling motions of vessels in waves. In turn, this enables sea-time in rough conditions and also helps reduce sea-sickness.

What did Veem announce?

The company has achieved its sales target, with revenue recorded at $3.6 million for the half-year ending 31 December. The company sold 8 gyrostabilisers in what has been a growing market since 2018.

At current, the company’s order book has $3.9 million worth of products. In comparison, the corresponding period in 2018 achieved just over half a million in revenue.

Veem said that almost all gyros sales were for superyachts, offshore supply vessels and charter boats. However, there were some retrofit sales to Damen – a Dutch defence, shipbuilding, and engineering conglomerate company based in the Netherlands. This included an offshore supply vessel in the Gulf of Mexico and a local West Australian charter boat.

After demonstrating the capacity of its new gyro facility, the VG1000SD, the company sold 2 units to Damen. Currently, Veem has a 3-year agreement with Damen for the supply of gyros as an option onboard its FCS workboats.

In addition, Mexican offshore contractor, Naviera Integral, will use the new gyro onboard its Damen FCS vessel in sea trials next month. Both companies have a strategic alliance together where Damen provides workboats to Naviera Integral.

Words from the managing director

Veem managing director Mark Miocevich welcomed the performance, saying:

We are very pleased to see the sales of VEEM Gyros continue to increase strongly and to have delivered on our guidance provided to the market for the first half of FY21.

Given our level of inquiries, orders in hand, the Damen frame agreement and increased capacity in our Gyro facility, we expect this sales trend to continue.

About the Veem share price

The Veem share price is breaking new ground today after bottoming out at a multi-year low of 37 cents in June last year.

More reading

• ASX 200 falls on Tuesday
• Here’s which ASX bank share this leading broker thinks you should buy
• 2 blockbuster blue chip ASX shares to buy in January
• Leading brokers name 3 ASX shares to sell today
• Why ASX lithium shares are running hot in 2021

Motley Fool contributor Aaron Teboneras 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.

The post Why the Veem (ASX:VEE) share price hit an all-time high today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ogO3pH

The big four banks may have underperformed in 2020, but things would have been far worse had they not rallied hard in the final quarter.

Thanks to a sharp reduction in COVID-19 related loans deferrals, vaccine optimism, the easing of responsible lending rules, and APRA’s decision to remove dividend restrictions, the big four banks were among the best performers on the S&P/ASX 200 Index (ASX: XJO) during the final three months of the year.

How did the big four banks perform in the final quarter?

Pleasingly for their shareholders, all the big four banks recorded double digit gains during those final months of the year.

For example, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price surged 31.8% higher, the Commonwealth Bank of Australia (ASX: CBA) share price jumped 29%, the National Australia Bank Ltd (ASX: NAB) share price stormed 27.3% higher, and the Westpac Banking Corp (ASX: WBC) share price rose 15%.

Is it too late to buy the banks?

While clearly the banks are no longer the bargain buys they were three months ago, one broker still sees value in some of them.

Here’s what Goldman Sachs thinks of the big four:

ANZ – Goldman currently has a neutral rating and $21.37 price target on ANZ’s shares. It is forecasting a 98 cents per share dividend in FY 2021 and a 127 cents per share dividend in FY 2022.

CBA – The broker has a sell rating and $65.84 price target on the shares of Australia’s largest bank. It has pencilled in dividends of $2.48 per share and $3.52 per share, respectively, over the next two years.

NAB – Goldman Sachs has a buy rating and $22.96 price target on NAB’s shares. It is expecting an 85 cents per share dividend in FY 2021 and then a 122 cents per share dividend in FY 2022.

Westpac – The broker also has a buy rating on Westpac’s shares, with a price target of $20.34. It expects Australia’s oldest bank to pay an 97 cents per share dividend in FY 2021 and then a 120 cents per share dividend in FY 2022.

More reading

• ASX 200 down 0.3%: BHP & Rio Tinto rise, big four banks drop, Zip sinks
• ASX 200 up 0.8%: CBA storms higher, Link sinks, tech shares rise
• 2 ASX dividend shares for income investors
• Fundie names 5 ASX shares with good growth prospects
• Disappointments from the ASX 200’s best ever December quarter

Motley Fool contributor James Mickleboro 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.

The post Here’s which ASX bank share this leading broker thinks you should buy appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38djmvL

If you’re planning to add a few blue chip ASX shares to your portfolio in the near future, then I would suggest you consider the two listed below.

As far as two brokers are concerned, they could be among the best on offer on the Australian share market right now. Here’s why they are rated as buys:

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotherapeutics companies and the name behind the high quality CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business.

Both of CSL’s businesses have been growing at a solid rate in recent years and have been tipped to continue doing so in the future. This is due to their leading therapies and vaccines, increasing demand, and lucrative research and development pipelines.

In respect to the latter, CSL’s pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. This includes clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.

UBS recently retained its buy rating and $346.00 price target on CSL’s shares. This compares to the latest CSL share price of $284.72.

Xero Limited (ASX: XRO)

Another blue chip to look at is Xero. It is one of the world’s leading cloud-based business and accounting software platform providers. Over the last few years the company has successfully evolved from being a place to do your accounts, to a full-service small business solution.

This has helped underpin significant subscriber and revenue growth. For instance, during the first half of FY 2021, Xero finished the period with 2.45 million subscribers. This led to it reporting a 21% increase in operating revenue to NZ$409.8 million and a 15% lift in annualised monthly recurring revenue (AMRR) to NZ$877.6 million.

One broker that is confident there will be more of the same over the 2020s is Goldman Sachs. Last month it initiated coverage on the company with a buy rating and $157.00 price target. Goldman believes Xero can achieve a 2030 subscriber footprint of 7.4 million and generate NZ$3.4 billion in annual revenue.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The top performing ASX 200 tech shares of 2020 
• Sonic Healthcare (ASX:SHL) share price gets fresh COVID boost
• Disappointments from the ASX 200’s best ever December quarter
• 2 of the best ASX growth shares to buy in January

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 CSL Ltd. and Xero. 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.

The post 2 blockbuster blue chip ASX shares to buy in January appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3hPKlAT

With most brokers taking a well-earned break over the holiday period, research notes are few and far between right now.

In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.

Three sell ratings that you might want to pay attention to are listed below:

National Storage REIT (ASX: NSR)

According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted the price target on this self-storage operator’s shares to $1.57. Goldman made the move following the release of the company’s trading update and guidance for FY 2021. Although there were aspects of the update that pleased the broker, it notes that there wasn’t enough detail to allow it to change its overall view. Particularly given its current valuation, which Goldman Sachs appears to believe is excessive compared to its peers. It points out that its shares are trading at a 23x estimated FY 2022 FFO. This compares to a sector average of ~17x. The National Storage share price is trading at $1.91 today.

OZ Minerals Limited (ASX: OZL)

Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and lifted the price target on this copper producer’s shares to $16.70. According to the note, Goldman believes OZ Minerals’ shares are overvalued at the current level. It notes that they are trading at 1.2x net asset value, compared to the sector average of 1x net asset value. It believes this is due to the market valuing its Carrapateena mine in line with the larger and higher quality Olympic Dam mine owned by BHP Group Ltd (ASX: BHP). The OZ Minerals share price is changing hands for $19.77 this afternoon.

Virtus Health Ltd (ASX: VRT)

Analysts at Morgan Stanley have downgraded this fertility treatment company’s shares to an underweight rating but increased the price target on them to $4.90. Morgan Stanley made the move after a very strong gain in recent months left its shares looking overvalued. In addition to this, the broker has concerns about the impact that a long term shift to lower-value IVF services will have on its earnings. The Virtus Health share price is trading at $5.54 today.

More reading

• ASX mining shares that delivered the best returns in 2020
• 2 ASX dividend shares for income investors
• These ASX dividend shares offer investors attractive yields
• Why the Oz Minerals (ASX:OZL) share price is up 78% in 2020
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

from The Motley Fool Australia https://ift.tt/3b9AGUo