Top brokers name 3 ASX shares to sell today

Bega Cheese Ltd (ASX:BGA) shares are one of three tipped as sells by top brokers this week. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On Wednesday I looked at three shares that had found favour with brokers and been given the coveted buy rating.

Not all shares are in favour, though. Three that have fallen out of favour and been given the unwanted sell rating are listed below.

Here's why brokers think you should avoid them:

Ainsworth Game Technology Limited (ASX: AGI)

According to a note out of UBS, it has retained its sell rating and cut the price target on the game technology company's shares to $1.02 following the release of its full year results late yesterday. Although Ainsworth Game Technology's results were in line with its expectations, the broker hasn't seen anything in them to warrant a change in recommendation. Due to their heavy decline this year and the low multiples they trade, I wouldn't be a seller of its shares if I owned them. However, I still believe that there are better options in the industry for investors to choose from.

Bega Cheese Ltd (ASX: BGA)

A note out of Morgans reveals that its analysts have downgraded this food company's shares to a reduce rating with an improved price target of $7.00. While its full year results were in line with its guidance, the broker wasn't overly pleased with the lack of colour around its outlook. In addition to this, the broker suspects that an equity raising may be on the horizon after its acquisition of the Koroit facility from Saputo. I would have to agree with Morgans on this one and think its shares are a little on the expensive side right now.

Metcash Limited (ASX: MTS)

Analysts at Credit Suisse have retained their underperform rating and $2.51 price target on this wholesale distributor's shares following its annual general meeting yesterday. The broker wasn't surprised with management's trading update and saw little reason to adjust its recommendation. Credit Suisse's analysts aren't overly bullish on FY 2019 and feel a flat result would be a positive. I agree with Credit Suisse and intend to stay clear of Metcash for the time being.

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.

More on Share Market News

a group of enthusiastic people dash out of open doors as though in a hurry to purchase something. The picture features the legs of some people, faces of others and people in the background trying to get through the crowd.
Opinions

Why I'm calling this ASX reporting season 'buying season'

Reporting season might come in like a wrecking ball... and that's fine by me.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Broker Notes

These ASX shares could rise 20% to 40%

Big returns could be on offer from these stocks according to analysts.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Share Market News

Good ASX news! Australia's 'one of the cleanest markets in the world'

Investors can sleep well at night knowing our market system has integrity.

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Market News

5 Australian shares to buy and hold forever

Analysts think these buy-rated shares would be great options for investors.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Share Market News

Could Fortescue shares fall a further 14% from here?

Bell Potter is tipping the mining giant's shares to continue sinking.

Read more »

Happy work colleagues give each other a fist pump.
Share Market News

Here are the top 10 ASX 200 shares today

The ASX actually finished its week on a high note today.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Broker Notes

Buy one, sell the other: Goldman's take on these 2 ASX retail shares

Despite high interest rates and inflation, ASX retail shares have been on a strong run.

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Bellevue Gold, Chrysos, Meteoric Resources, and Newmont shares are falling today

These shares are having a tough finish to the week. But why?

Read more »