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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. Some of these notes were positive and some were quite bearish.

Three sells ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

NIB Holdings Limited (ASX: NHF)

According to a note out of Ord Minnett, its analysts have downgraded this private health insurer’s shares to a sell rating with an improved price target of $6.58. The broker made the move due to concerns that regulatory pressure could weigh on premium rates and limit its growth over the medium term. In light of this, it doesn’t believe its shares deserve to trade at the premium they currently trade at. NIB’s shares are currently changing hands at 22x estimated forward earnings after closing the week at $7.98.

Rio Tinto Limited (ASX: RIO)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $92.00 price target on this mining giant’s shares following its half year results release. According to the note, Rio Tinto delivered a result largely in line with its estimates. However, given the challenges it faces at its Pilbara and Oyu Tolgoi operations, the broker has held firm with its rating for the time being. Rio Tinto’s shares ended the week at $94.77.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their sell rating and $14.90 price target on this global wine company’s shares. According to the note, the broker continues to remain bearish on Treasury Wine Estates after analysing recent industry data. It believes the company’s growth could disappoint in FY 2020 due to rising competition and increasing grape costs. Treasury Wine Estates’ shares finished the week notably higher than Citi’s price target at $17.41.

Those may be the shares to sell, but here are the shares 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 Treasury Wine Estates Limited. The Motley Fool Australia has recommended NIB Holdings 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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