Top brokers name 3 ASX shares to sell next week

Top brokers have named Commonwealth Bank of Australia (ASX:CBA) and these ASX shares as sells for next week. Here's why they are bearish…

| More on:
hand drawing a clock face with the words time to sell

Image Source: Getty Images

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 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:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $14.20 price target on this infant formula and fresh milk company's shares. The broker has been looking at the a2-only market in China and notes increasing competition from a local producer. It has concerns that if competitors price their a2-only products at lower levels to appeal to the mass market, it could damage the a2 Milk Company brand. The a2 Milk share price ended the week at $14.45.

Commonwealth Bank of Australia (ASX: CBA)

Analysts at Morgans have downgraded this banking giant's shares to a reduce rating with a reduced price target of $63.00. The broker made the move following the release of Commonwealth Bank's first quarter update. It notes that the bank's net interest margin has been contracting due to the low interest rate environment and lower lending margins. This has led to the broker downgrading its earnings forecasts through to FY 2023. In light of this, it sees no reason to change its rating any time soon. The CBA share price last traded at $73.14.

InvoCare Limited (ASX: IVC)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but increased the price target on this funerals company's shares to $9.40. This follows the announcement of the acquisitions of two pet cremation businesses for $49.8 million. Although it sees this as a positive, it has concerns over market share losses by its core business and feels its valuation is stretched. The InvoCare share price was fetching $11.55 on Friday.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended InvoCare 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

Oil industry worker climbing up metal construction and smiling.
Energy Shares

ASX 200 energy shares lead the market as US trade deals fuel optimism

ASX energy shares lifted 3.94% as more US trade deals led to improved market sentiment.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

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

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »