Leading brokers name 3 ASX shares to sell right now

Commonwealth Bank of Australia (ASX:CBA) and two other popular ASX shares have been rated as sells by leading 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

Most of Australia's leading brokers are taking well-deserved breaks over the holiday period.

As a result, it remains quiet on the broker note front again this week.

In order to fill the void, I've picked out three sell ratings that caught my eye this month. Here's why brokers have named them as sells:

Afterpay Touch Group Ltd (ASX: APT)

Analysts at UBS have retained their sell rating and $17.60 price target on this payments company's shares. According to the note, the broker appears concerned by the buy now pay later platform provider's impairment charges relative to its average gross loans. UBS notes that rapid loan growth can sometimes mask credit issues. It believes things could get worse as it expands into lower socio-economic demographics. The Afterpay share price is notably higher than this price target at $30.11.

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Goldman Sachs, its analysts retained their sell rating and $76.10 price target on this banking giant's shares following the RBNZ Capital Review. Although Goldman believes CBA is best placed and can fund the increase in its NZ subsidiary capital requirements via contributed equity from the group, it remains bearish on the bank. The broker continues to believe that CBA will be more adversely impacted by lower rates and non-interest income pressures. As a result, it struggles to justify the material premium that its shares are trading at compared to its peers. The CBA share price last traded at $81.10.

Woolworths Group Ltd (ASX: WOW)

A note out of Credit Suisse reveals that its analysts have retained their sell rating but lifted the price target on this retail conglomerate's shares to $35.63. According to the note, the broker has been looking over its planned demerger of the Endeavour Drinks business. Although Credit Suisse believes the demerger will create value, it is still not enough for a change in rating. The Woolworths share price was changing hands at $37.44 on Monday.

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 AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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

Man sitting in a plane looking through a window and working on a laptop.
Broker Notes

Should you buy Qantas shares before reporting season? Here's what Macquarie recommends

We look at Macquarie’s expectations for the surging Qantas share price in FY 2026.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Share Market News

5 things to watch on the ASX 200 on Thursday

Here's what to expect on the local market today.

Read more »

A set of scales with a bag of money balanced against a timer, indicating growth versus value shares
Opinions

Which ASX sector offers the best value heading into earnings season?

I think one sector is particularly compelling.

Read more »

Green stock market graph.
Share Gainers

Here are the top 10 ASX 200 shares today

It was one for the history books today.

Read more »

Person holding a blue chip.
Blue Chip Shares

4 ASX 200 blue-chip shares to hold but not buy: experts

These blue-chips are worth holding if you already own them, but are too expensive for new investors to buy.

Read more »

A bricklayer peeps over the top of a brick wall he is laying with a level measuring tool on top.
Broker Notes

Are Brickworks shares a buy, hold or sell ahead of earnings season?

Brokers have been weighing property gains, US headwinds, and merger impacts to form a view.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Broker Notes

Top brokers name 3 ASX shares to buy today

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

Read more »

Green stock market graph with a rising arrow symbolising a rising share price.
Record Highs

The ASX 200 just hit a new record high. Here's why.

The prospect of lower interest rates is pushing the market into new territory.

Read more »