Leading brokers name 3 ASX shares to sell today

On Monday I looked at a few shares that had found favour with brokers this week and been given buy ratings.

Unfortunately, not all shares have been so lucky. Three shares that have been given the unwanted sell rating are listed below. Here’s why the leading brokers think you should avoid them:

Altium Limited (ASX: ALU)

According to a note out of Ord Minnett, it has initiated coverage on this printed circuit board design software provider with a sell rating and lowly $16.54 price target. The broker struggles to justify Altium’s valuation and has suggested that the level of recurring revenues it is generating does not deserve such a premium valuation. With the market expecting earnings per share of around 40 cents in FY 2019, Altium’s shares do trade on a sky-high multiple of approximately 55x forward earnings. While I remain confident that the quality of its offering and its exposure to the rapidly growing Internet of Things market will allow it to generate sufficient growth to justify the premium, it is worth remembering that its shares would almost certainly come under significant selling pressure if it failed to do so.


A note out of Goldman Sachs reveals that it has retained its sell rating on the Australian stock exchange operator with a price target of $47.70. According to the note, while the broker thinks the company has many favourable features such as a near-monopoly in many products, low capital intensity, and no debt, it is trading on a much higher multiple than its global peers. I would agree with Goldman on this one and believe there are better options out there for investors until it trades on a fairer valuation.

Woolworths Group Ltd (ASX: WOW)

Analysts at Morgan Stanley have retained their underweight rating and $23.00 price target on the retail conglomerate’s shares despite its belief that the new Caltex Limited (ASX: CTX) deal will give its petrol business a significant earnings boost. The broker also suspects that a new fuel-related rewards program could lift its food business. While I wouldn’t be a seller of its shares if I owned them, I wouldn’t be a buyer unless they came down 10% or so from here.

While analysts think those shares are sells, our top analyst thinks these top four shares are in the buy zone right now.

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and 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 Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!