Top brokers name 3 ASX shares to sell

With earnings season out of the way now, brokers have been busy evaluating the prospects of countless shares listed on the local share market.

Three which have not fared well are listed below. Here’s why they have been given sell ratings:

Adelaide Brighton Ltd. (ASX: ABC)

According to a note out of Citi, its analysts have retained their sell rating but raised the price target on the building materials company’s shares slightly to $5.20. Although earlier this week Adelaide Brighton delivered record full-year revenues and declared a special dividend, Citi appears underwhelmed by its weak FY 2018 guidance and margin declines during the year. Whilst I’m not a buyer of its shares myself, I would be surprised if they fell to Citi’s price target. After all, Deutsche Bank is currently in the market on behalf of Barro to buy 19 million Adelaide Brighton shares at $6.75 per share.

Harvey Norman Holdings Limited (ASX: HVN)

Another note out of Citi reveals that its analysts have retained their sell rating and $3.50 price target on this retailer’s shares. Both Harvey Norman’s half-year result and interim dividend were below the broker’s expectations. Furthermore, while its international businesses continue to perform well, Citi believes the local market is becoming increasingly competitive. I would agree with Citi on this one and think investors ought to stay clear of Harvey Norman’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Deutsche Bank have retained their sell rating and $10.00 price target on the insurance giant’s shares. According to the note, the broker is optimistic that the company’s simplification program will be a big positive for its performance and put it in a more sustainable position, but it isn’t ready to make any changes to its recommendation just yet. I’m not a fan of QBE and would suggest investors follow the advice of Deutsche’s analysts.

While those shares may be classed as sells by brokers, I think they would agree that these top shares are strong buys today.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean 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 2018."

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%.

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 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.

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.