Top brokers name 3 ASX shares to sell next week

Top brokers have named Zip Co Ltd (ASX:Z1P) and these ASX shares as sells for next week. Here’s why they are bearish…
The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia. –

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:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

According to a note out of UBS, its analysts have retained their sell rating and trimmed their price target on this medical device company’s shares to NZ$22.65 (A$21.34). This follows the release of the company’s full year results last week. Although the company delivered very strong profit growth, it still fell short of the broker’s expectations. In addition to this, although management has not provided guidance for FY 2022, UBS is expecting a sharp decline in earnings due to COVID-19 tailwinds ending. Overall, it feels this makes the company’s shares overvalued. The Fisher & Paykel Healthcare share price ended the week at A$27.47.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $39.60 price target on this fund manager’s shares. Morgan Stanley has been looking at the company’s new retirement income product. While it believes the FuturePay product has a lot of potential and could support fund inflows, it will be capital intensive. In addition, it notes that the company’s active ETFs are experiencing fund outflows. The Magellan share price was fetching $48.30 at the end of the week.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have retained their sell rating and cut their price target on this buy now pay later provider’s shares to $5.60. According to the note, the broker has made its move on the belief that Zip’s margins are under threat from increasing competition in the United States. This would be a disappointment given the higher margins its QuadPay business enjoys. It also suspects that a major US bank could enter the market in the future like Commonwealth Bank of Australia (ASX: CBA) has in Australia. The Zip share price ended the week at $7.19.

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 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 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 May 24th 2021

More reading

Biggest ASX losers in May could be winners in June

These were the worst performing ASX 200 shares last week

RBA delivers win for BNPL providers like Sezzle (ASX:SZL)

These 3 shares are this week’s biggest fallers of the ASX 200

Why BetMakers, CSR, EOS, & Fisher & Paykel Healthcare are tumbling

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!