Top brokers name 3 ASX shares to sell next week

Close up of a sad young Caucasian woman reading bad news on her phone.

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 investors might want to hear about 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 retained their underperform rating and $5.40 price target on this infant formula company’s shares. Macquarie notes that smaller infant formula rival Bubs Australia Ltd (ASX: BUB) delivered strong sales growth in China during the first quarter. While this could be a good sign for A2 Milk, the broker isn’t in a rush to change its rating. It appears to be waiting for the company’s investor update at the end of the month. The A2 Milk share price ended the week at $6.72.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $90.00 price target on this banking giant’s shares. Morgan Stanley has concerns that APRA’s decision to increase bank loan serviceability expectations could lead to lower housing loan approvals. And given how CBA’s total loan book has significant exposure to the housing market, it fears this could hit the bank’s revenue and earnings. The CBA share price was fetching $102.28 at Friday’s close.

Regis Resources Limited (ASX: RRL)

Analysts at Goldman Sachs have retained their sell rating and cut their price target on this gold miner’s shares to $2.30. Goldman continues to believe that Regis’ shares are expensive compared to peers. It notes that the company is trading at 0.85x net asset value versus the sector average of 0.75x. In light of this, it sees a lot more value for money elsewhere in the sector. The Regis share price ended the week in line with this price target at $2.30.

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

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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 recommended A2 Milk. 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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