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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:

ASX Ltd (ASX: ASX)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $73.00 price target on this stock exchange operator’s shares. Its analysts expect a soft first half performance from ASX Ltd in FY 2021. It notes that the majority of its divisions are experiencing subdued trends, with only cash equities performing well. In light of this, it feels its shares are overvalued at the current level. The ASX Ltd share price ended the week at $82.28.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted the price target on this pizza chain operator’s shares to $61.32. Although the broker has upgraded its estimates to account for a stronger than expected performance in the first half of FY 2021, it remains concerned with its valuation. Based on Credit Suisse’s forecast, Domino’s is current trading at 41x forward earnings. The Domino’s share price was trading notably higher than this price target at $82.91 on Friday.

St Barbara Ltd (ASX: SBM)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this gold miner’s shares to $3.00. This follows the release of St Barbara’s first quarter update, which fell short of the broker’s expectations. This has led to the broker downgrading its near term earnings forecasts and price target accordingly. The St Barbara share price ended the week a touch higher than this price target at $3.10.

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Returns as of 6th October 2020

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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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