Leading brokers name 3 ASX shares to sell today

On Monday I looked at three shares that leading brokers had named as buys this week.

Today I thought I would look at the shares which have fallen out of favour with brokers and been given sell ratings.

Three that caught my eye are listed below, here’s why they have fallen out of favour:

AGL Energy Ltd (ASX: AGL)

According to a note out of Morgan Stanley, it has retained its underweight rating and $19.44 price target on this energy retailer’s shares. The broker appears to believe that AGL Energy’s earnings may peak this year before trending lower due largely to political developments. I completely agree with Morgan Stanley on this one and feel energy prices are going to be a hot topic during the next election. I would suggest investors avoid the sector for the time being.

Primary Health Care Limited (ASX: PRY)

Analysts at UBS has retained their sell rating and cut the price target on this healthcare company’s shares to $2.70. The broker made the move after the Fair Work Commission released a decision and draft Workplace Determination relating to support employees within its Dorevitch pathology business. The Determination is expected to hit underlying net profit by $4.5 million and UBS has revised its forecasts to account for the changes. I would agree with the broker on Primary Health Care as well. I think there are far better options in the healthcare sector to consider at this stage.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

A note out of the Macquarie equities desk reveals that its analysts have downgraded the airport operator’s shares to an underperform rating from neutral but increased the price target on its shares to $7.13. According to the note, the broker believes that the upcoming Productivity Commission review could weigh on Sydney Airport’s shares as concerns over regulatory intervention impact investor sentiment. In addition to this, Macquarie expects the airport operator’s dividend growth to slow in the coming years as it prepares to pay tax again. I would suggest investors consider following Macquarie’s recommendation, especially with U.S. rates rising and bond yields likely to widen.

While those shares may be the ones to sell, these are the shares to buy in my opinion.

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 owns shares of and has recommended Sydney Airport Holdings 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.

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.