Leading brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as sells this week. Here’s why they are bearish…
The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia. –
On Monday I looked at three ASX shares that brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have resumed coverage on this infant formula and fresh milk company’s shares with an underperform rating and $7.15 price target. The broker notes that Chinese birth rates are falling, which it fears could soon lead to a contraction in the infant formula industry in the lucrative market. It believes this could weigh on a2 Milk’s profit growth in the future. The a2 Milk share price is fetching $8.04 on Tuesday.
Mayne Pharma Group Ltd (ASX: MYX)
A note out of Macquarie reveals that its analysts have downgraded this pharmaceutical company’s shares to an underperform rating with an improved price target of 38 cents. The broker made the move partly on valuation grounds after some strong recent gains. And while Macquarie sees positives in the approval of its combined oral contraceptive Nextstellis in the United States, it isn’t enough to become more positive. Particularly given its belief that near term trading conditions will remain subdued. The Mayne Pharma share price is trading at 46.5 cents this morning.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this airport operator’s shares to $5.30. According to the note, the broker has increased its estimates to reflect the positive impact of the ANZ travel bubble on passenger volumes. It notes that this particular route accounted for 7% of passengers prior to the pandemic. However, even after making these adjustments, it still feels its shares are expensive at the current level. Especially given the risk associated with the roll out of COVID-19 vaccines. The Sydney Airport is currently fetching $6.06.
Where to 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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Declining birth rates could threaten the A2 Milk (ASX:A2M) share price
- Australia-NZ bubble now open! The 4 ASX shares impacted
- Why GPT, Mayne Pharma, Talga, & Zip shares are tumbling lower
- These 3 ASX shares have just hit 52-week highs or better
- ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
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 and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.