The Motley Fool

Leading brokers name 3 ASX shares to sell

Earlier today I looked at three ASX shares that have been given buy ratings by leading brokers this week.

Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why they think they are ASX shares to sell:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $12.20 price target on this infant formula and fresh milk company’s shares. The broker continues to believe that the company will fall short of the market’s expectations over the medium term due to its focus on growing sales at the expense of short term profits. In addition to this, news that Chinese infant formula company Junlebao has launched an a2-only product is being seen as a negative. The a2 Milk Company share price is down 2% to $11.84 on Tuesday.

CSR Limited (ASX: CSR)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.25. According to the note, the broker appears a touch surprised by speculation that CSR is a takeover target. Whilst it cannot fully rule it out, it suspects that its asbestos liability could be off-putting to would-be suitors. Outside this, the broker continues to believe that CSR could fall short of expectations over the next couple of years. The CSR share price is trading notably higher than this price target at $4.69.

Westpac Banking Corp (ASX: WBC)

Analysts at UBS have retained their sell rating and $24.50 price target on this banking giant’s shares. According to the note, Westpac fell short of its expectations with its FY 2019 results. In light of this and the increasing pressure on revenues, the broker has reduced its earnings estimates. It also expects the bank to reduce its interim dividend down to 80 cents per share next year. The Westpac share price has fallen to $26.99 on Tuesday afternoon.

Those may be the shares that have been given sell ratings, but here are the shares that have just been rated as strong buys.

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia owns shares of A2 Milk. 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!