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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 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:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

According to a note out of Citi, its analysts have retained their sell rating and lifted the price target on this medical device company’s shares to NZ$22.75 (A$21.40). Although the broker was very impressed with its earnings growth in FY 2020 and believes its guidance for the new financial year is conservative, it isn’t enough for a change of rating. Citi continues to believe that its shares are too expensive at the current level. The Fisher & Paykel Healthcare share price ended the week at $32.91.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have downgraded this investment platform provider’s shares to an underperform rating with an improved price target of $8.30. The broker made the move largely on valuation grounds after its shares recovered strongly from their March lows. In addition to this, Credit Suisse believes its softening revenue margin could mean it falls short of consensus earnings estimates over the short term. The Netwealth share price closed at $9.04 on Friday.

St Barbara Ltd (ASX: SBM)

A note out of the Macquarie equities desk reveals that its analysts have downgraded this gold miner’s shares to an underperform rating with a $2.60 price target. St Barbara is just one of a number of gold miners the broker downgraded last week. It made the move on the belief that the strengthening Australian dollar will weigh on the gold miners’ earnings growth in the near term. The St Barbara share price ended the week at $3.29.

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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 Netwealth. 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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