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Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three shares that had been given buy ratings this week by top brokers following the release of their respective results or updates.

Not all shares have been so fortunate, though. Three shares that have been given sell ratings this week are listed below:

ALS Ltd (ASX: ALQ)

According to a note out of Deutsche Bank, it has retained its sell rating and $6.87 price target on the shares of this provider of testing and analytical laboratory services following the release of its guidance at its annual general meeting. ALS’ management expects underlying half-year net profit after tax from continuing operations to be in the range of $85 million and $90 million, compared to the broker’s estimate of $85 million. Deutsche downgraded ALS to a sell rating in May due to its belief that it wouldn’t be able to maintain its above-industry growth in the medium term. While I wouldn’t necessarily be a seller of its shares if I owned them, I wouldn’t be a buyer unless there was a decent pullback.

Ardent Leisure Group (ASX: AAD)

Analysts at UBS have retained their sell rating and $1.75 price target on this entertainment company’s shares following the release of its trading update. The broker doesn’t appear to have seen anything in the update to warrant a change of recommendation and believes that the Main Event brand needs to improve its margins before a potential U.S. IPO is an option. UBS’ price target implies potential downside of almost 7%. I wouldn’t be a seller of Ardent Leisure shares at this point and believe there’s far more upside potential than downside risk now.

Regis Resources Limited (ASX: RRL)

A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on the gold miner’s shares to $3.85 following the release of its production update. The broker appears concerned by the company’s rising costs and flat production guidance for FY 2019. And although the broker thinks Regis is a quality miner, it feels its shares are overvalued at present. I would have to agree with Citi on this one and believe that investors that are bullish on gold would be better with one of its cheaper rivals.

Finally, those may be the shares tipped as sells, but these buy-rated shares are the ones to snap up this month in my opinion.

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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.

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