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Top brokers name 3 ASX shares to sell next week

James Mickleboro
ASX shares to avoid

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite 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:

Cochlear Limited (ASX: COH)

According to a note out of Citi, its analysts have retained their sell rating and $198.00 price target on this hearing solutions company’s shares following its FY 2020 guidance downgrade. Cochlear reduced its profit guidance for the full year due to concerns over the impact of the coronavirus on its sales in China. The broker notes that the low end of Cochlear’s guidance range implies a reasonably sharp decline in sales in the second half. The Cochlear share price ended the week at $233.00.

Commonwealth Bank of Australia (ASX: CBA)

Analysts at Morgan Stanley have retained their underweight rating but lifted the price target on this banking giant’s shares to $75.50. According to the note, Commonwealth Bank delivered a first half result ahead of the broker’s estimates thanks to better than expected margins. And whilst it expects Commonwealth Bank to deliver stronger revenue growth over the next couple of years than the rest of the big four, it is not enough for a change of rating. It feels the bank’s shares are expensive at this level and the risk is to the downside. Commonwealth Bank’s shares last traded at $90.99.

REA Group Limited (ASX: REA)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this property listings company’s shares to an underperform rating but lifted the price target on them to $110.00. According to the note, the broker felt that REA Group’s first half performance was solid given the significant decline in national property listings. And while it expects listing volumes to recover in the second half thanks to the improving housing market, it feels investors are expecting too much from the company based on its current share price. The REA Group share price finished the week at $113.73.

The post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.

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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. 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