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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Macquarie, its analysts have downgraded this infant formula company’s shares to an underperform rating with a $5.60 price target. This follows the company’s fourth earnings guidance downgrade for FY 2021. The broker doesn’t appear to believe that the issues the company is facing will be an easy fix. Particularly given changes in consumer preferences in the massive China market, which make its future performance highly uncertain. The a2 Milk share price ended the week at $5.53.
AGL Energy Limited (ASX: AGL)
Analysts at Credit Suisse have retained their underperform rating and cut the price target on this energy company’s shares to $7.00. According to the note, the broker has been looking into its separation plans. And while it sees some positives in the move, it doesn’t expect it to change its growth outlook. Credit Suisse only sees modest growth from the New AGL business over the coming years. The AGL share price was fetching $8.51 at Friday’s close.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $83.00 price target on this banking giant’s shares. This follows the release of a stronger than expected third quarter profit result. However, this isn’t enough for a change in its recommendation. The broker continues to believe that its shares are overvalued at the current level and prefers other options in the sector. The Commonwealth Bank share price ended the week at $96.58.
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More reading
- These were the worst performing ASX 200 shares last week
- What drove the Commonwealth Bank (ASX:CBA) share price this week?
- The Commonwealth Bank (ASX:CBA) share price hits new record high
- Has the A2 Milk (ASX:A2M) share price finally found a bottom?
- ASX 200 falls below 7,000, Xero sinks, Afterpay falls
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.
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