Top brokers name 3 ASX shares to sell next week

Domino's Pizza Enterprises Ltd (ASX:DMP) and these ASX shares have been named as sells 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

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite bearish.

Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:

Domino's Pizza Enterprises Ltd (ASX: DMP)

According to a note out of Morgans, its analysts have retained their reduce rating but lifted the price target on this pizza chain operator's shares to $57.61. The broker was pleased with its performance in the first half of FY 2020 and notes that the return of the $5 value range helped drive strong same store sales growth. And while it likes its defensive qualities and positive growth profile, its current valuation appears to be a problem for Morgans. As a result, it has retained its reduce rating. The Domino's share price ended the week at $62.78.

Medibank Private Ltd (ASX: MPL)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and reduced the price target on this private health insurer's shares to $2.80. According to the note, Medibank's half year result fell short of the broker's estimates despite its solid reduction in management expenses. It remains reasonably bearish on its prospects, but acknowledges that government action in the industry could change that, depending on what action is taken. The Medibank share price last traded at $2.91.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Analysts at Citi have retained their sell rating and cut the price target on this airport operator's shares to $6.83. According to the note, Sydney Airport delivered a FY 2019 result that was in line with expectations thanks to better than expected cost controls. However, it notes that management did not provided any guidance for its dividends in FY 2020. Combined with the current coronavirus situation, it suspects that its dividend growth could be under pressure. The Sydney Airport share price closed the week at $8.39.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. 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 worried man holds his head and look at his computer.
Share Fallers

Why Elders, James Hardie, Origin Energy, and SGH shares are falling today

These shares are starting the week in the red. But why?

Read more »

Man with rocket wings which have flames coming out of them.
Gold

Guess which ASX gold stock just rocketed 167% on big news!

Investors are sending the ASX gold stock flying higher on Monday. Let’s find out why.

Read more »

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Up 34% since April, ASX 300 healthcare stock lifts off again today on new milestone

The ASX 300 healthcare stock has been on a tear since hitting one-year lows in April.

Read more »

The last piece of the jigsaw being fitted, indicating good news for a share price on merger or acquisition
Mergers & Acquisitions

WiseTech share price storms higher on $3.25b blockbuster acquisition

What is the company spending billions on? Let's find out.

Read more »

A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate
Broker Notes

5 of the best ASX 200 shares to buy in June

Let's see what brokers are recommending to investors for next month.

Read more »

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Monday

Here's what to expect on the benchmark index today.

Read more »

An ASX 200 market analyst holds his hand to his chin and looks closely at his computer screens watching share price movements
Opinions

Forget term deposits! I'd buy these two ASX 200 stocks instead

I think ASX stocks could make a much better investment than term deposits.

Read more »