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.
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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.