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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:

Harvey Norman Holdings Limited (ASX: HVN)

According to a note out of Morgan Stanley, its analyst have retained their underweight rating and $3.20 price target on this retailer’s shares. The broker appears disappointed with Harvey Norman’s full year result and notes that its earnings fell short of its estimates. As a result, its analysts see no reason to change their rating on the company’s shares and see more value elsewhere in the retail sector. Harvey Norman’s shares finished the week at $4.45.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $39.83 price target on this fund manager’s shares following the release of its latest funds under management update. According to the note, the broker has been impressed with Magellan’s solid operating momentum, but continues to believe its shares are expensive relative to both the domestic market and global asset managers. In light of this, it fears there could be material downside for its shares over the next 12 months. Magellan’s shares last traded at $54.32.

NIB Holdings Limited (ASX: NHF)

Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and $5.85 price target on this private health insurer’s shares after a review of the insurance industry. According to the note, the broker remains bearish on NIB largely on valuation grounds after a strong share price gain this year. In addition to this, Goldman expects lower rate increases to put pressure on its margins in FY 2020. NIB’s shares ended the week at $7.18. Incidentally, Goldman’s pick in the industry is Suncorp Group Ltd (ASX: SUN).

Those may be the shares rated as sells, but here are the shares rated as buys this month.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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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