Leading brokers name 3 ASX shares to sell today

Leading brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as sells this 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

On Monday 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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $7.15 price target on this infant formula and fresh milk company's shares. The broker has concerns about rising competition in the key China market following the release of the results of China-based rival Feihe. Citi suspects that domestic producers could win a greater market share in the future. In addition to this, it has concerns that resellers of its infant formula may have to discount products soon as the expiry date of their inventory draws closer. The a2 Milk share price is trading at $8.39 on Tuesday. Incidentally, for the same reasons, Citi has reiterated its sell rating and 35 cents price target on Bubs Australia Ltd (ASX: BUB) shares.

AGL Energy Limited (ASX: AGL)

Analysts at Morgan Stanley have retained their underweight rating and $10.68 price target on this energy company's shares. According to the note, the broker was pleased to see AGL renegotiate its supply deal with the Portland smelter last week. This removes an element of uncertainty from the equation. However, it is predicting that the new pricing will be below current market pricing, which could weigh on future earnings. The AGL share price is now trading below this price target at $10.54.

Blackmores Limited (ASX: BKL)

Another note out of Citi reveals that its analysts have retained their sell rating and $59.20 price target on this health supplements company's shares. The broker has been looking at Blackmores' options in the China market. Citi appears to believe the company should consider a partnership in the country to support it with regulatory and distribution capabilities. However, for the time being, the broker remains bearish. Especially given concerns over increasing competition in Australia, tough trading conditions in the daigou market, and its soft second half guidance. The Blackmores share price is trading notably higher than Citi's price target at $83.36 today.

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 and Blackmores 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

Woman in celebratory fist move looking at phone
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 female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Share Market News

Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Market News

CBA Shares in focus: How Australia's most valuable company is using AI to compete

Could AI initiatives drive CBA shares higher?

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Looking for big returns? Brokers think these shares could do the job.

Read more »

asx share price represented by cartoon letters spelling the word FOMO
Share Market News

What did Macquarie's "FOMO Meter" reveal about the stock market in May?

Is the market getting frothy or is there still room to climb?

Read more »

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »

A young man sits at his desk working on his laptop with a big smile 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 »