Here’s why brokers are bearish on these ASX shares…
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 retained their sell rating but lifted their price target on this fresh milk and infant formula company’s shares to $5.50. The broker has increased its earnings estimates slightly to reflect better than expected demand for infant formula. However, despite this, its earnings estimates are below consensus. In addition, the broker has concerns over its daigou sales and a lack of product differentiation. The a2 Milk share price is fetching $6.69 today.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgans reveals that its analysts have retained their reduce rating with an improved price target of $76.00. The broker is positive on the banks and expects better than expected net interest margins, cost reductions, and buybacks to be supportive. However, due to valuation reasons, the broker is holding firm with its reduce rating on CBA’s shares. It believes the multiples its shares are trading on are stretched. The CBA share price is trading at $98.77 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Morgan Stanley have retained their underweight rating and $39.60 price target on this fund manager’s shares. According to the note, the broker sees downside risk to fund inflows in FY 2022 and doesn’t believe this is being reflected in its share price. In addition to this, the broker believes its performance has been soft and notes that its shares are among the most expensive in the industry globally. The Magellan share price is trading at $53.80 on Tuesday.
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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.