MENU

Here are 3 ASX shares that a leading broker thinks you should sell today

With so many shares to choose from on the Australian share market, it is near impossible to keep tabs on each and every one of them. But thankfully there are brokers out there doing a lot of the hard work for you.

Here are three shares which UBS thinks you should sell today. But should you?

Ansell Limited (ASX: ANN)

A research note out of UBS this morning reveals that its analysts have downgraded the health and safety protection solutions provider’s shares to a sell rating with a $24.00 price target following its decision to offload its Sexual Wellness business. Its analysts appear to be disappointed with the decision, considering it has been its fastest-growing segment. Whilst I feel Ansell has received a good price for the business, I still wouldn’t be a buyer at the current share price. Considering its tepid earnings growth, I think 18x trailing earnings is reasonably expensive.

SEEK Limited (ASX: SEK)

Another note out of the investment bank this week shows that its analysts have reiterated their sell rating and $14.00 price target on the job-listing company’s shares. Although its fledgling China-based Zhaopin business reported 30% growth in revenue during the March quarter, UBS wasn’t overly impressed due to the prior corresponding period being a particularly weak quarter. Whilst this may be the case, I still think the growth of Zhaopin over the last two years has been very impressive. Furthermore, I expect it to continue for the foreseeable future. I wouldn’t class SEEK as a sell, but at 31x trailing earnings it would have to be a hold for me.

Sigma Healthcare Ltd (ASX: SIG)

Finally, the investment bank’s analysts have downgraded Sigma Healthcare from a buy rating to a sell with a 76 cents price target. This downgrade comes following the shock announcement that Sigma is taking legal action against one of its largest customers. I completely agree with UBS on this one. I feel it is very unlikely that Chemist Warehouse will renew its supply contract with the company in 2019 following the legal action. If this happens it would almost certainly leave a big gap in its future earnings.

Whilst the shares above may not necessarily be buys at this point, I do think that these fast-growing blue-chip shares could be considered strong buys today.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro owns shares of Seek Limited. 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 Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.