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Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three shares that had found favour with brokers this week and been given buy ratings.

Not all shares have been so fortunate, with some being hit with the dreaded sell rating.

Three shares that top brokers have named as sells this week are listed below:

Challenger Ltd (ASX: CGF)

According to a note out of Morgan Stanley, it has retained its underweight rating and $10.50 price target on this annuities company’s shares following the release of its latest quarterly update. The broker appears to have been disappointed with Challenger’s quarter and particularly its lifetime sales. These came in below the broker’s expectations during the quarter despite the company’s campaigns. While I agree with a lot of what Morgan Stanley says and wouldn’t be a buyer of its shares at these levels, I’d probably class them more as a hold than a sell right now.

Perpetual Limited (ASX: PPT)

Analysts at UBS have retained their sell rating and $41.50 price target on this fund manager’s shares after it released its quarterly funds under management (FUM) update. That update revealed that at the end of the quarter Perpetual’s FUMs were $30.2 billion, down $0.6 billion on the prior quarter. UBS appears concerned that this is the sixth quarter in the row of net outflows for Perpetual. Although its shares have now drifted below UBS’ price target, I would agree that it is still a sell.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their sell rating and $14.50 price target on this wine company’s shares ahead of its annual general meeting. The broker has been analysing wine industry data and notes that it shows soft volume trends across Treasury Wine Estates’ key markets. Although the data shows that pricing has improved, it still feels that there is downside risk to its earnings. I think Citi makes some interesting points, but hope management will ease concerns in its shareholder address later today. I would suggest investors keep their powder dry until it updates the market later today.

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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 and has recommended Challenger Limited. The Motley Fool Australia has recommended Treasury Wine Estates 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.