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Leading brokers name 3 ASX shares to sell right now

James Mickleboro
Broker holding red flag in front of bear

Most of Australia’s leading brokers are taking well-deserved breaks over the holiday period.

As a result, it remains quiet on the broker note front again this week.

In order to fill the void, I’ve picked out three sell ratings that caught my eye this month. Here’s why brokers have named them as sells:

Afterpay Touch Group Ltd (ASX: APT)

Analysts at UBS have retained their sell rating and $17.60 price target on this payments company’s shares. According to the note, the broker appears concerned by the buy now pay later platform provider’s impairment charges relative to its average gross loans. UBS notes that rapid loan growth can sometimes mask credit issues. It believes things could get worse as it expands into lower socio-economic demographics. The Afterpay share price is notably higher than this price target at $30.11.

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Goldman Sachs, its analysts retained their sell rating and $76.10 price target on this banking giant’s shares following the RBNZ Capital Review. Although Goldman believes CBA is best placed and can fund the increase in its NZ subsidiary capital requirements via contributed equity from the group, it remains bearish on the bank. The broker continues to believe that CBA will be more adversely impacted by lower rates and non-interest income pressures. As a result, it struggles to justify the material premium that its shares are trading at compared to its peers. The CBA share price last traded at $81.10.

Woolworths Group Ltd (ASX: WOW)

A note out of Credit Suisse reveals that its analysts have retained their sell rating but lifted the price target on this retail conglomerate’s shares to $35.63. According to the note, the broker has been looking over its planned demerger of the Endeavour Drinks business. Although Credit Suisse believes the demerger will create value, it is still not enough for a change in rating. The Woolworths share price was changing hands at $37.44 on Monday.

The post Leading brokers name 3 ASX shares to sell right now appeared first on Motley Fool Australia.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020