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Leading brokers name 3 ASX shares to sell today

On Monday I looked at three ASX shares that have been given buy ratings by brokers this week.

Unfortunately, not all shares have been lucky enough to have been given the highly coveted buy rating.

The three shares listed below have all been given sell ratings. Here’s why:

Challenger Ltd (ASX: CGF)

Analysts at Deutsche Bank have retained their sell rating and $7.00 price target on this annuities company’s shares. According to the note, its analysts note that the company’s cash operating earnings margins have declined and are weighing on its returns. Unfortunately, due to the low interest environment that it is operating in, the broker expects it to take some time for cash operating margins to recover and appears concerned that the company’s margin and return targets are not achievable. Challenger shares are trading at $8.11 at present.

InvoCare Limited (ASX: IVC)

According to another note out of Deutsche Bank, its analysts have retained their sell rating and $11.70 price target on this funerals company’s shares after it announced an $85 million capital raising. The broker has previously stated that it has concerns over ongoing strong competition in the industry and a shift to lower value services. This could be a problem given rising costs and the structural headwinds it faces. The InvoCare share price is currently trading at $13.94.

Newcrest Mining Limited (ASX: NCM)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but increased the price target on this gold miner’s shares to $21.00 after it announced plans to acquire a 70% stake in the Canada-based Red Chris project from Imperial Metals Corporation. Macquarie believes the acquisition fits with its strategy, though it will be another long-dated development option. The broker has previously voiced concerns that its falling production profile could weigh on its shares. Newcrest’s shares are currently changing hands at $25.43.

Whilst those shares may be the ones to sell, here are the ones tipped as buys this week.

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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 InvoCare 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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