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Top brokers name 3 ASX shares to buy next week

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were 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:

Altium Limited (ASX: ALU)

According to a note out of UBS, its analysts have upgraded this design software provider’s shares to a buy rating with a slightly reduced price target of $37.50. Although UBS feels that Altium will fall short of its guidance in FY 2020, it remains confident on its long term growth prospects. Furthermore, it believes its shares have fallen to an attractive level following the recent market volatility. I agree with UBS and believe Altium is a great long term option.

Appen Ltd (ASX: APX)

A note out of Credit Suisse reveals that its analysts have upgraded this AI and machine learning services provider’s shares to an outperform rating with a lowered price target of $22.00. Although the broker expects Appen’s performance to be impacted by a period of softer demand due to broad economic weakness, it remains confident in the long term. It also sees value in its shares after a sharp pullback over the last few weeks. I agree with Credit Suisse and would be a buyer of its shares once the volatility eases.

Medibank Private Ltd (ASX: MPL)

Another note out of Credit Suisse reveals that its analysts have upgraded this private health insurer’s shares to an outperform rating with an improved price target of $3.00. According to the note, the broker believes that Medibank and its private health insurer peers are going to benefit from a claims holiday because of the coronavirus. In light of this and the underperformance of its shares over the last 12 months, the broker believes now is an opportune time to invest. I think Credit Suisse makes some very good points and it could be worth a closer look.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Altium and Appen 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.