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Top brokers name 3 ASX shares to sell next week

ASX shares to avoid

Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Cochlear Limited (ASX: COH)

Analysts at UBS have retained their sell rating and cut the price target on this hearing solutions company’s shares to $158.00. UBS made the move after it withdrew its earnings guidance and lost its appeal in the US Court of Appeals. According to the note, the broker expects Cochlear’s sales to struggle in 2020 due to the coronavirus outbreak and its impact on elective surgeries. And although it expects the company to maintain its leadership position, it appears to believe that it could take time before unit sales return to historic levels. The Cochlear share price ended the week at $159.86.

Ramsay Health Care Limited (ASX: RHC)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $51.00 price target on this private hospital operator’s shares. According to the note, the broker notes that Ramsay has withdrawn in guidance for FY 2020 due to the coronavirus outbreak. While it only expects the impact of the virus to be temporary, it has longer term concerns over the margins of its Australian business and the value proposition of private health insurance. The Ramsay share price finished the week at $50.87.

Virgin Australia Holdings Ltd (ASX: VAH)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and slashed the price target on this airline operator’s shares to 1 cent. Credit Suisse notes that Virgin Australia has suspended all its international flights and cut the capacity of its domestic operations materially. It believes the airline will need a significant cash injection to fund its operations, but is unsure where it will come from. Especially after S&P downgraded its credit rating this month. The Virgin Australia share price last traded at 5.5 cents.

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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. and Ramsay Health Care Limited. 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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