Top brokers name 3 ASX shares to sell today

Top brokers have named Estia Health Ltd (ASX:EHE) and these ASX shares as sells this week. Here's why they are bearish…

| More on:

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 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:

Estia Health Ltd (ASX: EHE)

According to a note out of Morgan Stanley, its analysts have downgraded this aged care operator's shares to an underweight rating with a reduced price target of $1.50. The broker made the move after downgrading its earnings estimates for Estia Health. It believes that the company's earnings will remain challenged until the Royal Commission into the sector is finalised. The Estia Health share price is trading at $1.72 today.

News Corporation Class B Voting CDI (ASX: NWS)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and US$15.00 price target on this media giant's US listed shares. While the broker acknowledges that potential changes in Australia, in relation to social media companies paying for content, could be a big positive for the company, it isn't enough for a change of rating. The broker continues to believe that News Corp's shares are overvalued and its earnings outlook is challenging. The US listed shares of News Corp last traded at US$17.64, which implies potential downside of approximately 15%.

St Barbara Ltd (ASX: SBM)

Analysts at Macquarie have retained their underperform rating and $2.40 price target on this gold miner's shares. This follows the company's investor briefing, which highlighted new opportunities at its Gwalia mine. The broker notes that the company intends to undertake a new province strategy to fill its under-utilised mill and then develop provincial open pit and historic stockpile opportunities. While this has the potential to be a positive, it isn't enough to sway Macquarie. It is holding firm with its bearish rating for the time being. The St Barbara share price is fetching $2.48 on Thursday afternoon.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Warren Buffett
Share Market News

Could these Australian fund managers be the next Warren Buffett?

Buffett is widely regarded the world's most successful investor.

Read more »

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

These ASX 200 shares could rise 40%+

Big returns could be on offer from these shares according to analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Analysts say these ASX shares are top buys in June

Brokers are urging investors to buy these shares. Let's find out why.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors finished the trading week on a high note this Friday.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
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 »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Brainchip, Findi, Lottery Corp, and REA shares are falling today

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

Read more »

Happy teen friends jumping in front of a wall.
Share Gainers

4 ASX 200 shares leading the charge higher this week

Investors have been piling into these four ASX 200 shares this week. But why?

Read more »

Woman and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »