With many brokers taking a well-deserved break after a busy year, last week was another quiet one for broker notes.
To fill the void, I have picked out three broker sell recommendations that have caught my eye in recent weeks.
Here's why leading brokers think investors should be selling these ASX shares when the market reopens:
Cochlear Limited (ASX: COH)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this hearing solutions company's shares to $185.00. Macquarie notes that its survey shows that Cochlear has increased its market share over the last six months. However, it is seeing only a limited impact by the new Nucleus Profile Plus. As a result, it continues to believe that the market has yet not priced in the risk of increasing competition and retains its underperform rating. Cochlear's shares finished the week at $225.68.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at UBS have retained their sell rating and $8.00 price target on this iron ore producer's shares. According to the note, UBS appears to believe that Fortescue's shares are overvalued after a very strong rally in 2019. Especially considering the broker is expecting iron ore supply to normalise in the near term. This could weigh heavily on iron ore prices and ultimately its share price. The Fortescue share price last traded at $10.75.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $15.30 price target on this wine company's shares. According to the note, Goldman Sachs has been looking through key industry trends and its data appears to show difficulties in the US market and a deterioration in Chinese pricing and wine imports. It notes that of the 12 products it surveys on Chinese e-commerce platforms, 7 declined in price month on month. The Treasury Wine share price was changing hands at $16.13 on Friday.
