Analysts are bearish on these ASX shares…
The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia. –
Yesterday 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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their sell rating and $5.85 price target on this infant formula company’s shares. The broker has been looking at the key Chinese market and notes that domestic brands are growing in popularity on ecommerce platforms. Citi believes this demonstrates that Chinese consumers are shifting their presence to domestic producers ahead of a2 Milk and other western brands. The a2 Milk share price is trading at $6.11 today.
Pro Medicus Limited (ASX: PME)
Analysts at Morgans have downgraded this health imaging company’s shares to a reduce rating with an improved price target of $49.69. According to the note, the broker made the move on valuation grounds following a strong gain in recent weeks. While Morgan acknowledges that Pro Medicus is a high quality company, it suggests investors wait for a better entry point. The Pro Medicus share price is fetching $56.94 this afternoon.
St Barbara Ltd (ASX: SBM)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $1.70 price target on this gold miner’s shares. Macquarie notes that the company is starting a study at its Leonara site to investigate a new processing plant. It is also looking at the development of the Tower Hill and Harbour Lights resources. The broker expects this to require significant capital expenditures. Outside this, it has concerns that St Barbara’s impending FY 2022 guidance and outlook for Gwalia could fall short of market expectations. The St Barbara share price is trading at $1.77 today.
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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. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. 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.