The Motley Fool

Leading brokers name 3 ASX shares to sell today

On Monday I looked at three shares that leading brokers have named as buys this week.

Not all shares on the ASX are in favour right now, though. Three that have been given sell ratings are listed below, here’s why brokers are bearish on them:

Altura Mining Ltd (ASX: AJM)

According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and slashed the price target on the lithium miner’s shares to 16 cents. Although the broker is a bit more upbeat on the industry after positive comments around demand from rival Pilbara Minerals Ltd (ASX: PLS), it remains bearish on Altura Mining and doesn’t appear confident that it will be generating meaningful cash flows in the near term. The lithium miner’s shares are changing hands for 17 cents today.

ASX Ltd (ASX: ASX)

Analysts at Credit Suisse have retained their underperform rating and $55.00 price target on the Australian stock exchange operator’s shares. Although the broker notes that activity levels during the last quarter of calendar year 2018 were higher than it expected, it has retained its underperform rating on the belief that its earnings growth is slowing. In addition to this, at 25x trailing earnings, Credit Suisse believes that its shares are looking expensive now. The ASX share price is currently trading at $61.40.

Suncorp Group Ltd (ASX: SUN)

Another note out of the Macquarie equities desk reveals that its analysts have retained their sell rating and cut the price target on this insurance giant’s shares to $12.75. Its analysts believe that Suncorp may have to downgrade its guidance as its return on equity target of 10% seems unlikely to be achieved now. Furthermore, following the recent Sydney hailstorms, it feels there is a risk that it could breach its FY 2019 aggregate reinsurance cover. This adds to the downside risk to its current forecasts. The Suncorp share price is trading at $12.23 at the time of writing.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of ASX 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!