Brokers aren’t feeling very positive about 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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgans, its analysts have retained their reduce rating and cut their price target on this iron ore producer’s shares to $19.20. While Fortescue delivered a full year result in line with the broker’s expectations, it has questions over the company’s target of becoming a global technology leader in renewables and green products. As worthy as this is, Morgans wonders whether being an early adopter would be a more efficient approach rather than an innovator. Especially given how it is moving into a space far outside its established core competencies. The Fortescue share price ended the week at $20.85.
InvoCare Limited (ASX: IVC)
A note out of Macquarie reveals that its analysts have retained their underperform rating but increased their price target on this funerals company’s shares to $9.90. This follows the release of a solid half year result, which outperformed its expectations. However, Macquarie appears to believe a lot of this strong first half will be underdone in the second half due to lockdown headwinds. In light of this, the broker doesn’t see enough value in its shares to change its rating. The InvoCare share price was fetching $12.52 at Friday’s close.
Wesfarmers Ltd (ASX: WES)
Analysts at Citi have retained their sell rating and lifted their price target on this conglomerate’s shares to $49.00. According to the note, the broker was pleased with Wesfarmers’ performance in FY 2021 and its $2.3 billion capital return announcement. And while this has led to an increase in both its earnings estimates and price target. It isn’t enough for a more positive rating. Citi continues to believe that Wesfarmers’ shares are overvalued at the current level. The Wesfarmers share price ended the week at $57.78.
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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 owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.