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Top brokers name 3 ASX shares to sell next week

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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:

Computershare Limited (ASX: CPU)

According to a note out of Citi, its analysts have retained their sell rating and $12.00 price target on this stock transfer company’s shares. Citi believes that FY 2021 will be a tough year for the company due to the numerous headwinds it is facing. And while it does expect these headwinds to ease eventually, it fears it could be FY 2022 until there is an improvement in its performance. The Computershare share price ended the week at $12.29.

New Hope Corporation Limited (ASX: NHC)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this coal miner’s shares to 90 cents. Macquarie notes that New Hope delivered a weaker than expected FY 2020 result last week. Unfortunately, the broker doesn’t expect an improvement any time soon due to reducing production at New Acland and weak thermal coal prices. The New Hope share price last traded at $1.28.

Webjet Limited (ASX: WEB)

Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this online travel agent’s shares to $3.00. According to the note, Morgan Stanley is expecting another sizeable loss from Webjet in FY 2021 due to its exposure to the struggling leisure air travel market. And although it expects the company to return to profit in FY 2022, it doesn’t see value in its shares at the current level. The Webjet share price was fetching $3.66 at Friday’s close.

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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 Webjet 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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