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 investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
Ansell Limited (ASX: ANN)
According to a note out of Macquarie, its analysts have retained their underperform rating and cut the price target on this health and safety products company’s shares to $30.70. This follows the release of an update at its annual general meeting. Macquarie notes that Ansell will need a big second half to achieve consensus estimates. However, it doesn’t appear confident it will be able to deliver on this. The Ansell share price ended the week at $30.51.
Ramsay Health Care Limited (ASX: RHC)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $60.00 price target on this private hospital operator’s shares. Its analysts were not surprised by Ramsay’s weak first quarter update last week which revealed a 1.3% increase in first quarter revenue to $3.2 billion but a 39.5% decline in quarterly profit after tax to $58.1 million. Morgan Stanley had been anticipating a disappointing result due to margin pressures. The Ramsay share price was fetching $68.50 at Friday’s close.
Wesfarmers Ltd (ASX: WES)
Analysts at Citi have retained their sell rating but lifted their price target on this conglomerate’s shares to $50.00. This follows news that Wesfarmers has signed an agreement to acquire pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API). Although the broker expects the deal to give its earnings a small boost, it isn’t enough for a change of recommendation. Citi believes that Wesfarmers’ shares are overvalued at the current level. The Wesfarmers share price was trading at $59.42 at the end of the week.
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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 Ansell Ltd. and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.