Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three shares that were given buy ratings by brokers this week.

Not all shares have been so lucky, though. The three shares listed below have been declared as sells this week. Should you be selling?

Challenger Ltd (ASX: CGF)

According to a note out of Morgan Stanley, its analysts have retained their underweight and $10.50 price target on this annuities company’s shares. The broker appears concerned that the Federal Government intends to delay the requirement for funds to offer comprehensive income products for retirement (CIPR) until July 2022. In addition to this, the threshold superannuation balance required has been increased to $100,000 from $50,000. Morgan Stanley believes this will reduce the addressable market for lifetime annuities and the delay could lead to the lowering of earnings growth expectations and ultimately a derating of its shares. I agree with the broker on Challenger and think investors might be best avoiding it for the time being.

Commonwealth Bank of Australia (ASX: CBA)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $64.50 price target on this banking giant’s shares. According to the note, the broker has held firm with its rating after the bank announced the sale of its global asset management business for $4.1 billion. While Morgan Stanley sees this as a positive and appears pleased with the impact to its CET1 ratio, it hasn’t been enough to make the broker change its rating. While I wouldn’t necessarily be a seller of Commonwealth Bank’s shares if I owned them, I wouldn’t be a buyer right now as I see greater value elsewhere in the industry.

Ramsay Health Care Limited (ASX: RHC)

Analysts at Goldman Sachs have retained their sell rating and $49.00 price target on this private hospital operator’s shares after it announced that its offer for Capio had been approved by both regulators and shareholders. While the broker sees positives in the company entering four new hospital markets, it believes there is a risk that the focus required to integrate and scale these businesses could prove a distraction when its struggling core Australia operations need a lot of attention. I agree with Goldman and think Ramsay is one to avoid until trading conditions improve.

While those may be classed as shares to sell, these are the ones named as buys recently.

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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 Ramsay Health Care 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.

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