Top brokers name 3 ASX shares to sell today

Top brokers have named Zip Co Ltd (ASX:Z1P) 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:

Galaxy Resources Limited (ASX: GXY)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $1.50 price target on this lithium miner's shares. This follows Galaxy's announcement that it plans to push ahead with the basic engineering phase of its James Bay project in North America. The results of the Preliminary Economic Assessment were in line with what the broker was expecting. As such, no changes have been made to its recommendation at this point. It holds firm with its underweight rating for valuation reasons. The Galaxy share price is fetching $2.31 this afternoon.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their sell rating and $9.30 price target on this wine company's shares following its update on its Americas strategy. While the broker sees a lot of positives on its premiumisation strategy in the region, it isn't enough for a change in its rating. Especially given how its restructuring still has long way to go. The Treasury Wine share price is trading at $11.49 on Thursday.

Zip Co Ltd (ASX: Z1P)

A note out of UBS reveals that its analysts have downgraded this buy now pay later provider's shares to a sell rating with an improved price target of $6.40. According to the note, the broker was pleased with its strong growth during the first half. It also appears to believe more of the same is coming in the near term. However, it does have concerns by rising bond yields. This is due to the impact they could have on funding and its valuation. The Zip share price is fetching $8.42 on Thursday afternoon.

James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. 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

Happy woman holding white house model in hand and pointing to it with a pen.
Share Market News

Domain shareholders rejoice after CoStar snaps it up for a large premium

It's a good week to be a Domain shareholder.

Read more »

Smiling man with phone in wheelchair watching stocks and trends on computer
Share Market News

5 things to watch on the ASX 200 on Monday

A decent start to the week is expected for Aussie investors.

Read more »

A man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptop
Broker Notes

These ASX 200 stocks could rise 30% to 40%

Analysts are tipping these shares to go to the moon. Let's find out why.

Read more »

A man and woman dance back to back as they cook in kitchen.
Share Market News

ASX 200 'safe-haven' shares delivered divergent performances last week

ASX 200 utilities shares lifted while healthcare shares tanked last week.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
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 businessman hugs his computer and smiles.
Opinions

2 ASX 300 shares I plan to own forever

Both of these businesses have good ultra-long-term outlooks.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

$10,000 invested in the ASX 200 5 years ago is now worth…

Guess how much $10,000 invested in the ASX 200 five years ago is worth today!

Read more »

Retired couple hugging and laughing.
Share Market News

Eyeing retirement: Do you really need $1 million?

AustralianSuper recently weighed in.

Read more »