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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:

Cochlear Limited (ASX: COH)

Analysts at UBS have retained their sell rating but lifted the price target on this hearing solutions company’s shares to $185. According to the note, the broker believes Cochlear has lost market share due to competitors releasing MRI-compatible products ahead of it earlier this year. And while the broker expects stronger sales growth in FY 2020, it isn’t enough for a change in rating. UBS continues to believe its shares are overvalued for its current growth profile. The Cochlear share price ended the week at $224.84.

South32 Ltd (ASX: S32)

A note out of the Macquarie desk reveals that its analysts have retained their underperform rating and $2.40 price target on this mining giant’s shares. Macquarie remains bearish on South32 due to recent weakness in key commodities it produces such as manganese, coal, and alumina. If prices remain at these levels, it fears it could put a lot of pressure on its earnings in the coming years. South32’s shares last traded at $2.64.

Suncorp Group Ltd (ASX: SUN)

Analysts at Credit Suisse have retained their underperform rating and $12.75 price target on this insurance and banking giant’s shares following its first quarter banking update. According to the note, the broker was a touch underwhelmed with Suncorp’s first quarter update. It notes that its lending growth was weak during the quarter. In addition to this, it continues to believe that the market is not fully pricing in the risks to its earnings. The Suncorp share price ended the week at $13.19.

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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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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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