Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three shares that brokers had named as buys this week following recent updates and corporate events.

Not all shares have fared as well as these, though. For example, the three shares listed below have been given sell ratings this week. Here’s why brokers are bearish on them:

Aveo Group (ASX: AOG)

According to a note out of Macquarie, its analysts have downgraded this retirement communities company’s shares to an underperform rating and slashed the price target on them to $1.54 after yesterday’s update. On Wednesday Aveo warned that the residential market has softened considerably since August and is expected to impact its sales this year. Its current run rate indicates circa 1,150 sales in FY 2019, compared to its previous guidance of a minimum of 1,500 sales. Macquarie expects conditions to remain tough and margins to come under pressure for some time, making Aveo one to avoid.

DuluxGroup Limited (ASX: DLX)

A note out of Deutsche Bank reveals that it has retained its sell rating and $5.70 price target on this paints and homeware company’s shares following yesterday’s full year results release. Dulux posted a 5.4% increase in net profit after tax to $150.7 million and advised that it expects further growth in FY 2019 despite the cooling housing market. Deutsche was disappointed with the company’s results as its profit growth was boosted by an asset sale, lower than expected depreciation, and net interest expense. In addition to this, the broker felt that Dulux’s cash flow were weak. Overall, it sees no reason to change its rating at this stage.

Medibank Private Ltd (ASX: MPL)

Analysts at UBS have retained their sell rating and $2.60 price target on this private health insurer’s shares following the release of its annual general meeting update. According to the note, the broker felt that Medibank’s update was not as positive as the one from rival NIB Holdings Limited (ASX: NHF). And although it suspects that the company is playing it safe ahead of the Federal election and the next round of premium increases, it doesn’t see much to get excited about. It expects Medibank to achieve just modest market share gains this year in a flat market.

While those shares may be classed as sells, here are three shares that have been given buy ratings 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 NIB 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.

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