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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:

OZ Minerals Limited (ASX: OZL)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $8.00 price target on this copper producer’s shares. The broker is concerned that OZ Minerals’ cost guidance in 2020 will disappoint the market and be higher than current consensus estimates. It also appears to have a few concerns over the ramp up of the Carrapateena operation. The OZ Minerals share price ended the week at $10.84.

Pilbara Minerals Ltd (ASX: PLS)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this lithium miner’s shares to an underperform rating and slashed the price target on them to a lowly 21 cents. This follows a downgrade from outperform to neutral at the end of October. According to the note, the broker made the move due to the sharp decline in the price of the battery making ingredient. Macquarie notes that a subdued spodumene market is putting pressure on the company’s sales volumes. The Pilbara Minerals share price last trade at 26 cents.

Spark Infrastructure Group (ASX: SKI)

Analysts at Morgans have retained their reduce rating but lifted the price target on this utility infrastructure company’s shares to $2.00. According to the note, Morgans has concerns over Spark’s higher expenditures. Especially given how its 49% owned South Australia Power Network is not expected to generate a notable increase in revenue through to 2025. This could weigh on its returns in the medium term. Spark Infrastructure’s shares closed the week at $2.14.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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