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:
Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have retained their sell rating and $55.00 price target on this health supplements company’s shares. The broker notes that Nestle has announced the acquisition of fellow vitamin maker Bountiful Company for US$5.75 billion. While it acknowledges that this could be an indication of broader interest in the vitamins sector, it feels that Blackmores’ shares are too expensive for it to be considered a takeover target. The Blackmores share price ended the week at $71.64.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted the price target on this banking giant’s shares to $83.00. According to the note, the broker suspects that provision releases and more modest rises in underlying loss rates will be supportive of the earnings per share upgrade cycle continuing. This bodes well for dividend increases in the coming years. However, due to concerns over its valuation, the broker isn’t in a rush to change its rating on this banking giant’s shares. The Commonwealth Bank share price was fetching $89.04 at the close of play on Friday.
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 $2.70. According to the note, the broker has downgraded its earnings estimates materially to reflect a soft quarterly update and a reduction in full year production estimates. And while it notes that its shares are now trading below its price target, it isn’t changing its rating. This is due to execution risks at McPhillamys, regulatory approval risks, its out-of-the-money hedge book, and relative valuation. The Regis Resources share price ended the week at $2.60.
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More reading
- How the Commonwealth Bank (ASX:CBA) share price moved this week
- Why ASX bank shares may be facing a big sell-off in the next few weeks
- Why do ASX dividend shares underperform the market?
- Why Coles, Nickel Mines, Nitro, & Regis Resources are storming higher
- Why ASX gold miner Regis Resources (ASX:RRL) share price is moving higher
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. 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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