Top brokers name 3 ASX shares to sell

The Commonwealth Bank of Australia (ASX:CBA) share price is one of three tipped to sink lower by top brokers…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Wednesday I looked at a few shares that have found favour with brokers this week and been given buy ratings.

Today I thought I would look at the shares that have fallen out of favour with brokers and been given the dreaded sell rating this week.

Three that caught my eye are listed below:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Citi, its analysts have retained their sell rating and $72.00 price target on the banking giant's shares following the release of its full-year results yesterday. Although the broker acknowledges that its results were not as bad the market had feared, it isn't enough to change its recommendation. Citi believes revenue headwinds are here to stay and expects cost growth to remain high, putting pressure on its return on equity. While I think that Citi makes a fair point, I wouldn't be a seller at this level.

Primary Health Care Limited (ASX: PRY)

Analysts at Credit Suisse have retained their underperform rating with a reduced price target of $3.50 on the shares of this healthcare company. According to the note, the broker feels that Primary Health Care's shares are looking overvalued, especially given its weak earnings outlook. I would have to agree with Credit Suisse on this one. Based on its estimate of earnings per share of approximately 19 cents in FY 2019, its shares are changing hands at 17.5x forward earnings. I think better value can be found elsewhere.

Shopping Centres Australasia Property Group (ASX: SCP)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but raised the price target on the retail property group's shares to $2.23. The broker has held firm with its rating after Shopping Centres Australasia's full-year results were in-line with its expectations. Macquarie sees only low growth ahead for the property group. While I agree that the company is unlikely to grow at a quick pace, I think it is fairly priced at this level for its current growth profile.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Shopping Centres Australasia Property Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A couple lying down and laughing, symbolising passive income.
Opinions

How to invest in ASX shares for big capital gains AND passive income

Certain types of ASX shares are capable of producing good returns, including dividends.

Read more »

Man sits smiling at a computer showing graphs
Share Market News

Broker tips this fast-growing ASX 200 tech stock to outperform

Goldman Sachs is very bullish on the outlook of this growing tech company.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A young man wearing a black and white striped t-shirt looks surprised.
Broker Notes

Up 45% in 2024! Can ResMed shares keep rising?

Is this high-flying stock destined to keep soaring? Let's see what one broker is saying.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Share Market News

5 things to watch on the ASX 200 on Wednesday

Another big day awaits Aussie investors today. Here's what to look out for.

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Market News

ASX 200 takes the latest RBA interest rate verdict in stride

The ASX 200 looks to have shaken off today’s RBA interest rate call.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »