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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:

Cochlear Limited (ASX: COH)

According to a note out of UBS, its analysts have retained their sell rating and $160.50 price target on this hearing solutions company’s shares. UBS has concerns over rising coronavirus cases and the impact this could have on elective surgeries. In light of this and concerns that the market is expecting too much from its sales growth in the medium term, it holds firm with its sell rating. Cochlear shares were changing hands for $191.91 at the end of the week.

Whitehaven Coal Ltd (ASX: WHC)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on them to $1.40. Although it was impressed with its very strong fourth quarter production, it notes a significant build up in inventory due to subdued coal markets. As a result, it has concerns that its full year results could disappoint the market in August. The Whitehaven Coal share price closed the week at $1.55.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have downgraded this payments company’s shares to a sell rating with an improved price target of $5.70. According to the note, the broker was pleased with the company’s sales growth during FY 2020. However, it does appear a little concerned by a rise in its bad debts during the fourth quarter. In light of this and its strong share price gains over the last few months, UBS doesn’t believe this risk/reward on offer is sufficient. The Zip share price ended the week at $5.90.

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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. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cochlear 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.

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