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Top brokers name 3 ASX shares to sell

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

Today I thought I would look at the shares that have fallen out of favour with brokers and been given the dreaded sell rating this week.

Three that caught my eye are listed below:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Citi, its analysts have retained their sell rating and $72.00 price target on the banking giant’s shares following the release of its full-year results yesterday. Although the broker acknowledges that its results were not as bad the market had feared, it isn’t enough to change its recommendation. Citi believes revenue headwinds are here to stay and expects cost growth to remain high, putting pressure on its return on equity. While I think that Citi makes a fair point, I wouldn’t be a seller at this level.

Primary Health Care Limited (ASX: PRY)

Analysts at Credit Suisse have retained their underperform rating with a reduced price target of $3.50 on the shares of this healthcare company. According to the note, the broker feels that Primary Health Care’s shares are looking overvalued, especially given its weak earnings outlook. I would have to agree with Credit Suisse on this one. Based on its estimate of earnings per share of approximately 19 cents in FY 2019, its shares are changing hands at 17.5x forward earnings. I think better value can be found elsewhere.

Shopping Centres Australasia Property Group (ASX: SCP)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but raised the price target on the retail property group’s shares to $2.23. The broker has held firm with its rating after Shopping Centres Australasia’s full-year results were in-line with its expectations. Macquarie sees only low growth ahead for the property group. While I agree that the company is unlikely to grow at a quick pace, I think it is fairly priced at this level for its current growth profile.

Finally, while those shares may be sells, here are four buy-rated shares to consider snapping up this week.

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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 Shopping Centres Australasia Property Group. 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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