Top brokers name 3 ASX shares to sell today

These bearish analysts are saying investors shouldn’t be buying these shares…
The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia. –

Earlier today I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

St Barbara Ltd (ASX: SBM)

According to a note out of Macquarie, its analysts have retained their underperform rating and $1.70 price target on this gold miner’s shares. The broker has been looking at the gold sector. It believes the recent rally in the price of the precious metal will be fleeting and expects actions by the US Federal Reserve to push it lower. In light of this, it doesn’t see enough value in St Barbara at the current level to be more positive. Particularly given issues at its Gwalia operation. The St Barbara share price is currently trading at $1.81.

Woolworths Group Ltd (ASX: WOW)

A note out of Credit Suisse reveals that its analysts have downgraded this retail giant’s shares to an underperform rating and trimmed the price target on them to $37.98. The broker has made the move after looking over the company’s demerger of its Endeavour Group business. After factoring everything in, the broker believes its shares are overvalued, hence the downgrade. The Woolworths share price is fetching $42.63.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have retained their sell rating and $5.60 price target on this buy now pay later (BNPL) provider’s shares. According to the note, the broker fears that Zip’s US business could be seriously impacted if one of the major US banks decides to copy Commonwealth Bank of Australia (ASX: CBA) by entering the BNPL market. It worries that Quadpay’s Pay Anywhere product could ultimately be rendered obsolete if a bank offers a similar product. It doesn’t believe consumers will pay $1 per transaction if there’s a free alternative. The Zip share price is currently trading at $6.82.

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

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

Woolworths (ASX:WOW) share price on watch after ACCC approves PFD deal
Here’s what I think of Coles, PointsBet, NAB, AMP: analyst

Why Zip (ASX:Z1P) and this ASX growth share are highly rated by analysts
ASX 200 drops, Brickworks soars, Woolworths falls

Woolworths (ASX:WOW) under fire over Darwin Dan Murphy’s store

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Woolworths Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Important Notice
Trade The US Market With ZERO Brokerage* + FREE Access To Trading Ideas & Value Analysis Tools. Click Here!