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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:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating but lifted the price target on this health supplements company’s shares to $66.00. The broker has held firm with its sell rating after its annual general meeting update disappointed. Blackmores’ guidance for a first half profit of ~$21 million fell short of the broker’s expectations. Citi does, however, acknowledge that if Blackmores can form a joint venture in China, it may need to change its view. The Blackmores share price ended the week at $85.00.

Coles Group Ltd (ASX: COL)

Analysts at Credit Suisse have downgraded this supermarket giant’s shares to an underperform rating with a $13.17 price target. According to the note, Coles delivered a first quarter sales update in line with its expectations. However, this was not enough for the broker. It appears to believe its shares are overvalued at the current level. Credit Suisse also notes that Coles is some distance behind its main rival in relation to data use and automation. The Coles share price last traded at $15.02.

Costa Group Holdings Ltd (ASX: CGC)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this horticulture company’s shares to an underperform rating and slashed the price target on them to $2.51. According to the note, the broker appears disappointed with its earnings downgrade and is concerned it won’t be the last. With little visibility with its earnings, the broker has suggested that its 2020 guidance might be optimistic. The Costa share price fell heavily last week and ended it at $2.70.

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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 Blackmores Limited and COSTA GRP FPO. 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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