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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company’s shares. Although the broker notes that infant formula prices were stable in August and channel inventory is heading in the right direction, it isn’t enough for a change of rating. The broker continues to be concerned with its market position and China’s slowing birth rate. Credit Suisse fears its weak Stage 1 formula sales could impact future Stage 2 and Stage 3 sales. The A2 Milk share price ended the week at $5.51.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
A note out of Citi reveals that its analysts have retained their sell rating and NZ$27.00 (A$26.11) price target on this medical device company’s shares. Citi notes that lower COVID-related hospitalisations in Europe and North America are weighing on demand for its products in FY 2022. This has led to a decline in sales financial year to date. In light of this, the broker appears to believe its shares are overvalued at the current level. The Fisher & Paykel Healthcare share price was fetching $31.62 at Friday’s close.
Macquarie Group Ltd (ASX: MQG)
Another note out of Citi reveals that its analysts have retained their sell rating and lifted their price target on this investment bank’s shares to $153.00. The broker notes that Macquarie is guiding to a better than expected first half performance in FY 2022. However, this isn’t enough for a change of rating. Particularly given the broker’s belief that the second half will be tougher. As a result, the broker continues to believe that Macquarie’s shares are expensive at the current level and retains its sell rating. The Macquarie share price ended the week at $174.23.
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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 Macquarie Group Limited. 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.