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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 leading brokers this week.

Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why:

Bendigo and Adelaide Bank Ltd (ASX: BEN)

According to a note out of Morgan Stanley, its analysts have held firm with their underweight rating but lifted the price target on this regional bank’s shares to $9.70. Although the broker acknowledges that the Federal election result reduces risks relating to credit quality and mortgage growth, it expects the big four banks to benefit more than the regional players. For this reason, the broker has also retained its underperform rating on fellow regional bank Bank of Queensland Limited (ASX: BOQ). The Bendigo and Adelaide share price is up almost 3% to $11.20 today.

Ramsay Health Care Limited (ASX: RHC)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $52.00 price target on this private hospital operator’s shares following the Federal election result. According to the note, the broker suspects that the intensity of rate negotiations with private health insurers could be lower now that there will be no 2% premium increase cap, but it still expects a downward trajectory given the broader affordability challenge. Furthermore, its research shows that many payor negotiations have already been made on the basis of a 2% cap. The Ramsay share price is trading 1% lower at $68.73 today.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Analysts at Macquarie have retained their underperform rating but lifted the price target on this airport operator’s shares to $7.15 following its latest traffic update. With the outlook for traffic looking challenged in 2019, the broker believes that the company’s valuation has become stretched. This could put its shares at risk of a pullback in the near term. At present the Sydney Airport share price is trading slightly higher at $7.54.

Those may be the shares to sell, but here are the ones that have just been rated as buys.

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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 Sydney Airport Holdings Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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