The Motley Fool

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:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of UBS, its analysts have retained their sell rating and $70.00 price target on this banking giant’s shares ahead of its half year results. Although UBS believes that CBA deserves to trade at a premium to the rest of the big four, it appears to feel that its current valuation is stretched. As a result, its shares could come under pressure if it fails to deliver on the market’s high expectations for its half year result next week. The Commonwealth Bank share price ended the week at $84.80.

IOOF Holdings Limited (ASX: IFL)

Another note out of UBS reveals that its analysts have retained their sell rating and cut the price target on this financial services company’s shares to $6.80. According to the note, IOOF’s first half update was weaker than the broker expected. It estimates that the underlying profit of its core operations will be around 8% lower than it forecast. In light of this, it sees no reason to change its view on IOOF at this point. The IOOF share price last traded at $7.12.

JB Hi-Fi Limited (ASX: JBH)

Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this retailer’s shares to $28.27 ahead of its half year results release on Monday. It appears concerned that JB Hi-Fi will fall short of its guidance due to soft trading conditions in the discretionary retail market since the successful Black Friday sales event. It also notes that this softness continued through January. JB Hi-Fi’s shares finished the week notably higher than this price target at $40.10.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


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.