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Top brokers name 3 ASX shares to sell today

On Thursday I had a look at a few shares that had been given buy ratings by brokers this week.

Today I have decided to look at the other side of the coin and see which shares have fallen out of favour and been given sell ratings.

Three that caught my eye are listed below:

ASX Ltd (ASX: ASX)

According to a note out of Credit Suisse, the broker has retained its underperform rating on the operator of the Australian share market. It has, however, increased its price target to $54.00. Although ASX Ltd delivered a stronger-than-expected first-half result this week, it hasn’t been enough to warrant a change of recommendation, which has been based largely on its valuation. I would agree with Credit Suisse that ASX Ltd is just a little overvalued given its current growth profile.

Healthscope Ltd (ASX: HSO)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $1.70 price target on the private hospital operator’s shares. The broker appears to have been disappointed with Healthscope’s weak volumes in the first-half. Furthermore, it doesn’t expect things to improve in the second-half, ultimately leading to another soft full-year result. I think Healthscope could be worth adding to your watchlist, but I wouldn’t be a buyer of its shares until its performance improved greatly.

Newcrest Mining Limited (ASX: NCM)

Analysts at Deutsche Bank have retained their sell rating and $20.00 price target on the gold mining giant following yesterday’s results release. According to the note, Newcrest’s earnings fell short of the broker’s expectations. As a result, Deutsche has downgraded its estimates for full-year earnings per share by 12%. One potential positive that the broker sees, however, is the potential for management to use its strong balance sheet to fuel future growth through acquisitions or investments. While I think that Newcrest is one of the highest quality gold miners on the ASX, I can’t help but feel that its shares are vastly overvalued and would therefore have to agree that it is a sell.

While those shares may be sells, here are three top shares that I think brokers would class as strong buys.

Top 3 ASX Blue Chips To Buy In 2018

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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 ASX 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.

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