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Top brokers name 3 ASX shares to sell today

On Wednesday I picked out three shares that have found favour this week with brokers and been given buy ratings.

Today I thought I would look at the shares that are out of favour and been given the dreaded sell rating.

Three sell ratings that caught my eye are summarised below:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $64.50 price target on this banking giant’s shares following the release of its first quarter update on Wednesday. The broker has held firm with its underweight rating despite Commonwealth Bank delivering a first quarter cash profit in line with its estimates and housing loans ahead of its expectations. The broker remains concerned that a weaker housing market and structural headwinds pose a risk to its future earnings.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of Deutsche Bank reveals that it has retained its sell rating and lowly $36.00 price target on this pizza chain operator’s shares following its annual general meeting yesterday. At the meeting Domino’s revealed that its same store sales were 2.3% higher during the first 17 weeks of FY 2019. The broker notes that this indicates a slowdown in same store sales growth since the trading update given with its full year results. Deutsche appears disappointed that the company did not add any colour to this slowdown.

Suncorp Group Ltd (ASX: SUN)

Analysts at Macquarie have retained their underperform rating and reduced the price target on Suncorp’s shares to $14.30 following the release of its first quarter banking update on Wednesday. According to the note, the broker notes that Suncorp’s reasonably solid quarterly performance was underpinned by materially lower impairment losses which are likely to be unsustainable. In addition to this, the broker remains concerned by the impact of potential recommendations from the Royal Commission.

While those may be the shares tipped as sells, here are the shares tipped as buys for 2019.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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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