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Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three ASX shares that brokers had given buy ratings to this week.

Not all shares are in favour with brokers right now, though. The three ASX shares listed below have just been hit with the dreaded sell rating. Here’s why:

SEEK Limited (ASX: SEK)

Analysts at Citi have retained their sell rating and cut the price target on this job listings company’s shares to $16.50. According to the note, the broker has made the move after SEEK saw its Australian job adverts decline 1% during the month of November. The broker notes that this is the first November decline in four years and appears concerned that this could be the start of a cyclical downturn being triggered by the falling housing market.

Telstra Corporation Ltd (ASX: TLS)

Another note out of Citi reveals that its analysts have held firm with their sell rating and $2.50 price target on this telco giant’s shares following yesterday’s 5G update. According to the note, the broker is optimistic on 5G and the impact it could have on the Telstra business. However, it has noted that it would be unrealistic to think that it could be a fixed line substitute until there is sufficient bandwidth available. It expects additional spectrum to become available in FY 2021/FY 2022. However, in the meantime, it doesn’t believe Telstra will be able to generate sufficient cash flows to maintain its dividend and has forecast a cut to 16 cents per share in FY 2019.

TPG Telecom Ltd (ASX: TPM)

A note out of Goldman Sachs reveals that it has retained its sell rating and $7.20 price target on this telco company’s shares following its annual general meeting on Wednesday. At the event the company revealed that its year to date results are tracking well to its guidance. Goldman notes that management offered similar commentary a year earlier before delivering results ahead of guidance. As a result, the broker is comfortable with its estimates for FY 2019 which are ahead of guidance. However, for valuation reasons, TPG Telecom remains a sell.

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended SEEK Limited and TPG Telecom 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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