Top brokers name 3 ASX shares to sell next week

Top brokers have named A2 Milk Company Ltd (ASX:A2M) 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)

A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on this infant formula company's shares to $9.40. According to the note, the broker believes the tough trading conditions a2 Milk Company is facing will persist in the second half. In addition to this, the broker has concerns over increasing demand in China from domestic brands and structural pressures in the local market. The a2 Milk share price was fetching $9.96 at Friday's close.

AGL Energy Limited (ASX: AGL)

According to a note out of UBS, its analysts have retained their sell rating and put a $10.10 price target on this energy company's shares. This follows the release of a half year result last week which fell short of the broker's estimates. And while the broker notes that the company is attempting to offset the tough trading conditions by cutting costs significantly, UBS doesn't believe it will be enough to stop its earnings from falling meaningfully in the coming years. The AGL share price ended the week at $11.05.

Galaxy Resources Limited (ASX: GXY)

Analysts at Credit Suisse have downgraded this lithium miner's shares to an underperform rating with an improved price target of $2.10. According to the note, the broker was happy with its performance in FY 2020 and its guidance for the year ahead. However, that isn't enough to stop Credit Suisse from downgrading its shares to underperform on valuation grounds. The Galaxy share price was trading at $2.53 at Friday's close.

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX 200 shares can rise 20% to 50%

Let's see which shares are being tipped to rocket from current levels.

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Broker Notes

Why Guzman Y Gomez shares are a sell

Goldman Sachs has given its verdict on the burrito seller.

Read more »

A man pulls a shocked expression with mouth wide open as he holds up his laptop.
Broker Notes

Top brokers name 3 ASX shares to buy today

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

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why ALS, Fisher & Paykel Healthcare, IPD, and Predictive Discovery shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

Man looking at his grocery receipt, symbolising inflation.
Share Market News

How are ASX 200 investors responding to the latest Aussie inflation numbers?

The ASX 200 was up 0.2% today before the ABS reported the latest inflation figures.

Read more »

A couple makes silly chip moustache faces and take a selfie on their phone.
Broker Notes

Macquarie sees more upside in Telstra shares – What are they worth?

Telstra shares are up 34% over the past year, and Macquarie thinks there's more to come.

Read more »