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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:

Fortescue Metals Group Limited (ASX: FMG)

A note out of UBS reveals that its analysts have retained their sell rating but lifted the price target on this iron ore producer’s shares to $8.40. According to the note, the broker has pointed out that China consumes significantly more iron ore than it did during the 2003 SARS outbreak. In light of this, it has concerns that if coronavirus negatively impacts the Chinese economy, it could have a material impact on iron ore demand and therefore prices. The Fortescue share price ended the week at $11.39.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Analysts at Citi have retained their sell rating and cut the price target on this airport operator’s shares to $6.94. According to the note, the broker believes the outbreak of the coronavirus just ahead of the Lunar New Year could have a big impact on international passenger numbers passing through Sydney Airport. The broker believes upwards of a quarter of all Chinese visits to Sydney take place in February and March. In light of this, Citi has downgraded its earnings estimates for FY 2020 to reflect this. The Sydney Airport share price last traded at $8.39.

Webjet Limited (ASX: WEB)

According to a note out of Morgan Stanley, its analysts have downgraded this online travel agent’s shares to an underweight rating and cut the price target on them to $10.00. The broker made the move after some of its U.S. peers revealed that Google Travel was negatively impacting their businesses. Morgan Stanley suspects that the same could be happening to Webjet’s B2C business. This could mean Webjet will need to increase its marketing costs and give away margin to compete successfully with the tech giant. The Webjet share price ended the week at $11.75.

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 owns shares of and has recommended Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Webjet Ltd. 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