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Top brokers name 3 ASX shares to sell next week

Once again, a large number of broker notes hit the wires last week. Three sells ratings that caught my eye are summarised below.

Here’s why top brokers think investors ought to sell these shares next week:

CIMIC Group Ltd (ASX: CIM)

According to a note out of Credit Suisse, its analysts have downgraded this contractor’s shares to an underperform rating from neutral and slashed the price target on them to $35.00. Credit Suisse made the move after CIMIC’s half year results fell short of expectations last week. This led to its analysts downgrading its earnings forecasts for the full year and recommendation accordingly. The CIMIC share price last traded at $36.57, just a touch higher than its 52-week low.

Ramsay Health Care Limited (ASX: RHC)

Analysts at Goldman Sachs have retained their sell rating and $57.00 price target on this private hospital operator’s shares. According to the note, the broker acknowledges that the surprise election result means that payor pressure is likely to be less steep without a mandated 2% private health insurance premium cap. However, Goldman believes the structural issues impacting the industry will lead to continued price/mix erosion through the mid-term. In light of this, it feels Ramsay’s shares are expensive for its current growth profile. Ramsay Health Care’s shares ended the week at $73.09.

South32 Ltd (ASX: S32)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $2.70 price target on this mining giant’s shares following its latest quarterly update. According to the note, as well as falling short of expectations on its costs with a number of its operations, the broker notes that the prices of some of its key commodities are on the slide. In light of this, it suspects that capital management initiatives may be lower than expected in the near term. South32’s shares finished the week at $3.01.

Those may be the shares to sell, but here are the shares that have been recently 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 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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