MENU

Leading brokers name 3 ASX shares to sell

Although AGM season is winding down, many of Australia’s leading brokers are still as busy as ever and have released a good number of broker notes this week.

Three shares which haven’t fared so well from these notes are listed below. Here’s why they have been given sell ratings:

ASX Ltd (ASX: ASX)

According to a note out of UBS, its analysts have downgraded the Australian Stock Exchange operator to a sell rating with a $52.90 price target following its decision to replace CHESS with a distributed ledger technology. The broker has stated that the financial implications of the switch are largely unknown at this stage and believes the boost it has given its share price is likely to fade. Overall, the broker thinks its shares are overvalued and I would agree. Its shares are priced at 25x estimated forward earnings and I think investors could find better value for money elsewhere.

Platinum Asset Management Limited (ASX: PTM)

Analysts at Macquarie have retained their underperform rating on the fund manager’s shares following the release of its funds under management update yesterday. The broker has, however, raised its price target slightly to $5.21. Though, this is still significantly lower than its current share price due to the broker’s belief that its funds growth does not justify the premium its shares trade at. While I wouldn’t necessarily be a seller of its shares, I wouldn’t be a buyer unless they came down a good 10% from where they trade today.

Treasury Wine Estates Ltd (ASX: TWE)

A note out of Citi reveals that its analysts have retained their sell rating and $10.90 price target on the wine company’s shares. The broker believes that the loss of market share in the Americas and Australia and weak pricing in Europe are likely to offset the strong demand in Asia. Once again, while I wouldn’t be selling shares if I owned them, at 41x trailing earnings I’d only buy Treasury Wine Estates’ shares now if there was a pull-back in its share price.

Finally, those shares may have been tipped as sells, but these hot tech shares have been tipped as buys. Don't miss out on them.

Analyst reveals 3 revolutionary tech companies to watch on the ASX

Entire new industries and technologies unheard of 15 years ago are now regular parts of our lives.

It's difficult to keep up with new developments - but if you think things are changing fast now, you haven't seen anything yet. We're in the midst of a technology revolution full of opportunities to make huge amounts of money.

We've found 3 Aussie companies at the forefront of this revolution. For everything you need to know, go here!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX Limited and Platinum Investment Management Limited. 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.