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Top brokers name 3 ASX shares to sell today

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on them:

Afterpay Touch Group Ltd (ASX: APT)

According to a note out of UBS, its analysts have reiterated their sell rating and $17.25 price target on this payment company’s shares. Although it notes that the Afterpay share price has pulled back in recent weeks, it still believes it can fall materially lower. The broker has concerns over competitive pressures, increasing regulatory scrutiny, and its execution. In addition to this, it notes that the business model hasn’t been tested through the full economic cycle. The Afterpay share price is up at $26.27 on Thursday.

Blackmores Limited (ASX: BKL)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this health supplements company’s shares to $58.00. According to the note, the broker feels the market is looking beyond its recent profit downgrade on the belief that its earnings have now bottomed. But Macquarie doesn’t feel this is wise and notes that its shares have a very strong recovery priced into them. The Blackmores share price is currently trading at $82.42.

Medibank Private Ltd (ASX: MPL)

Analysts at Credit Suisse have retained their underperform rating and $2.90 price target on this private health insurer’s shares. According to the note, the broker acknowledges that Medibank’s shares have fallen heavily recently, particularly after yesterday’s disappointing claims update. However, this is not enough of a pullback for the broker to change its rating. It still believes its shares are overvalued at the current level. Medibank shares are currently changing hands at $3.09.

Those may be the shares rated as sells, but here are the shares named as strong buys for 2020.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Blackmores 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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