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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.

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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.

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