Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling overly positive on these shares…
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:

Bubs Australia Ltd (ASX: BUB)

According to a note out of Citi, its analysts have retained their sell rating and 35 cents price target on this infant formula company’s shares. The broker has been looking at the Chinese infant formula market and expects the new three-child policy to be a boost to overall industry sales. However, it expects the increase in birth rates to be skewed to lower tier cities. These are areas where domestic infant formula brands have strong positions. As a result, Bubs may not benefit greatly. The Bubs share price ended the week at 50 cents.

Qantas Airways Limited (ASX: QAN)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut their price target to $3.90. According to the note, the broker has reduced its forecasts to reflect its belief that domestic capacity levels will be lower than expected because of lockdowns. The broker is forecasting capacity of just 40% during the first quarter and 70% during the second quarter compared to pre-COVID levels. It fears that if this disruption continues, it could mean Qantas will be to raise funds in the future to strengthen its balance sheet. The Qantas share price was fetching $4.55 on Friday afternoon.

Syrah Resources Ltd (ASX: SYR)

Analysts at Morgan Stanley have retained their underweight rating and 80 cents price target on this graphite producer’s shares. According to the note, Syrah’s production during the June quarter was ahead of its expectations. However, shipping container issues led to weaker sales volumes. Outside this, Morgan Stanley has previously spoken about concerns over potentially high capital expenditure that may need extra funding. The Syrah share price ended the week at $1.30.

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

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More reading

ASX 200 travel shares slide as New Zealand closes travel bubble

Qantas (ASX:QAN) share price falls as capacity drops below 40%
Why the Syrah (ASX:SYR) share price is surging 12% in 2 days
Qantas (ASX:QAN) share price on watch as CEO warns lockdowns could cost jobs
Qantas (ASX:QAN) share price tanks another 2% on Tuesday

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 BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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