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Top brokers name 3 ASX 200 shares to sell next week

ASX shares to avoid

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:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted the price target on this banking giant’s shares to $61.50. The broker believes that its retail business could struggle in the near term and suspects this could lead to a sizeable dividend cut or even a deferral. The Commonwealth Bank share price ended the week at $68.68.

InvoCare Limited (ASX: IVC)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this funerals company’s shares to an underperform rating with a reduced price target of $10.20. Macquarie believes that InvoCare’s earnings could fall short of expectations in FY 2020 due to lower average case prices and social distancing initiatives reducing winter flu deaths. In addition to this, the broker suspects that it could be losing market share. InvoCare’s shares last traded at $11.36.

Treasury Wine Estates Ltd (ASX: TWE)

Another note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this wine company’s shares to $9.30. The broker notes that consumers are turning their attention to value wines. It feels this shift to value could weigh on its margins in FY 2021. And while the reopening of restaurants should be a boost, it is concerned that Treasury Wine may have to discount its products to support its sales. The Treasury Wine share price ended the week at $10.69.

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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 and has recommended Treasury Wine Estates Limited. The Motley Fool Australia has recommended InvoCare 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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