2 ASX 200 financial shares to sell: Experts

S&P/ASX 200 Index (ASX: XJO) financial shares are 1.85% higher as the market recovers from yesterday’s $90 billion rout.

Meanwhile, experts have recommended that investors sell two popular ASX 200 financial shares.

Here’s why.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

The Soul Pattinson share price is 1.5% higher at $38.35 on Tuesday, and up 16% over the past 12 months.

Soul Patts is a diversified investment house that invests across a range of industries and asset classes, including ASX shares.

On The Bull this week, Mark Elzayed from Investor Pulse revealed a sell rating on this ASX 200 financial share.

Elzayed explains his sell rating:

SOL has long earned its place in Australian portfolios because of its enviable dividend record and conservative stewardship.

Even so, we see grounds for a tactical exit.

The valuation has moved to a premium relative to underlying asset momentum, with the price-to-earnings ratio sitting well above its longer term average.

Elzayed also spoke of moderation across Soul Patts’ core holdings of New Hope Corporation Ltd (ASX: NHC) and TPG Telecom Ltd (ASX: TPG) shares and the Brickworks business.

(New Hope shares are among the biggest fallers of the ASX 200 on Tuesday — here’s why.)

Elzayed concluded:

Softer global coal prices are tempering the exceptional cash generation previously delivered by New Hope, while TPG continues to navigate an intensely competitive telecommunications landscape.

Absent a meaningful acquisition to reignite growth, the fading post-merger enthusiasm around the Brickworks restructuring could leave the shares marking time.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $14.42, up 2.3% on Tuesday and down 25% over 12 months.

Also on The Bull this week, John Athanasiou from Red Leaf Securities gave the insurance giant a sell rating.

Athanasiou explained:

While premium rate increases have helped, we believe margin expansion is peaking. Earnings are exposed to claims inflation, natural catastrophe volatility and regulatory scrutiny.

Half year results to December 31, 2025 highlighted these risks. Profit after tax of $263 million was down from $1.1 billion in the prior corresponding period. Cash earnings were hit by higher natural hazard costs and the interim dividend was reduced.

Suncorp declared a fully franked interim dividend of 17 cents per share for 1H FY26, down from 41 cents per share in 1H FY25.

The Suncorp interim dividend represents a payout ratio of 68% of cash earnings, and will be paid on 31 March.

Athanasiou added:

Much of the recent improvement reflects cyclical conditions rather than structural change.

In our view, the valuation is vulnerable given competitive pricing pressure and rising affordability concerns. 

The post 2 ASX 200 financial shares to sell: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.