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

Galaxy Resources Limited (ASX: GXY)

A note out of the Macquarie equities desk, reveals that its analysts have retained their underperform rating and slashed the price target on this lithium miner’s shares to 80 cents. According to the note, the broker felt that Galaxy’s production during the September quarter was strong, but it notes that shipments were weak. In addition to this, it believes the company’s decision to reduce its production in FY 2020 is a sign of a weakening market outlook. The lithium miner’s shares fell heavily last week and finished it at 84 cents.

JB Hi-Fi Limited (ASX: JBH)

According to a note out of UBS, its analysts have retained their sell rating and lowly $28.00 price target on this retailer’s shares following its quarterly update. During the first quarter of FY 2020, the JB Hi-Fi Australia business delivered same-store sales growth of 3.7%. This led to total sales growth of 4.7% for the business. Whilst the broker was impressed with its sales performance during the quarter, it has concerns over downside risks to its margins and therefore maintains its sell rating. The JB Hi-Fi share price rose strongly last week and ended it at $37.19.

Newcrest Mining Limited (ASX: NCM)

Analysts at Goldman Sachs have retained their sell rating and $27.00 price target on this gold miner’s shares following its quarterly update. According to the note, Newcrest’s production fell well short of the broker’s estimates. Another negative was that that its costs were notably higher than Goldman expected. This was blamed on maintenance at Cadia, Lihir, and Telfer. In light of this, it sees no reason at this stage to make any changes to its bearish view. The Newcrest share price last traded at $32.43.

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