Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
Seek Limited (ASX: SEK)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this job listings giant’s shares to $26.60. This is despite the broker forecasting Seek to deliver EBITDA ahead of consensus estimates and up 57% year on year in FY 2022. Goldman doesn’t believe this strong growth will be sustained and is forecasting a modest 4% lift in FY 2023. In light of this, it feels its shares are expensive at the current level. The Seek share price is trading at $24.39 on Tuesday.
Wesfarmers Ltd (ASX: WES)
A note out of Citi reveals that its analysts have downgraded this conglomerate’s shares to a sell rating and cut their price target on them to $42.00. The broker has been looking at the retail sector and appears to have concerns over the impact that high fuel prices, rising interest rates, and the resumption of travel will have on consumer confidence. The Wesfarmers share price is fetching $49.73 this afternoon.
Xero Limited (ASX: XRO)
Analysts at UBS have retained their sell rating and cut their price target on this cloud accounting platform provider’s shares to $70.00. While Xero outperformed the broker’s revenue expectations, its subscriber numbers fell short and no operating leverage emerged. However, the main sticking point for the broker is the company’s lack of cash flow. UBS feels this makes its valuation stretched despite recent weakness. The Xero share price is trading at $86.18 today.
The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- Why this fund manager is backing Xero shares for the rest of 2022
- ‘Future-proof your portfolio’: experts pick 3 quality growth ASX shares to buy
- 5 things to watch on the ASX 200 on Tuesday
- What’s dragging on the Wesfarmers share price on Monday?
- Leading brokers name 3 ASX shares to buy today
Motley Fool contributor James Mickleboro has positions in SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited and Xero. 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 Scott Phillips.
from The Motley Fool Australia https://ift.tt/TPKXa8F
Leave a Reply