Top brokers name 3 ASX shares to sell next week

Top brokers have named Blackmores Limited (ASX:BKL) and these ASX shares as sells for next week. Here’s why they are bearish…

| More on:
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:

Blackmores Limited (ASX: BKL)

According to a note out of Citi, its analysts have retained their sell rating and $60.50 price target on this health supplements company’s shares. This follows the release of a trading update at its annual general meeting. While it is pleased with the progress Blackmores is making with cost cutting, it has concerns over its softening sales. In light of this and increased competition in Australia, it sees no reason to change its rating any time soon. The Blackmores share price ended the week at $70.26.

Fortescue Metals Group Limited (ASX: FMG)

Analysts at Morgan Stanley have retained their underweight rating and $14.10 price target on this iron ore producer’s shares. According to the note, Fortescue delivered a first quarter update that was largely in line with its forecasts. It also notes that the company has held firm with its guidance for FY 2021. Nevertheless, it believes the company’s shares are overvalued at the current level and holds firm with its underweight rating. The Fortescue share price was fetching $17.37 at Friday’s close.

Pilbara Minerals Ltd (ASX: PLS)

Another note out of Citi reveals that its analysts have retained their sell rating and 32 cents price target on this lithium miner‚Äôs shares following its quarterly update. Although the broker has lifted its FY 2021 forecast to account for Pilbara Minerals’ updated guidance, the broker remains concerned by weak lithium prices. It thinks investors should wait for a meaningful recovery in lithium prices before considering an investment. The Pilbara Minerals share price ended the week at 42 cents.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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.

More on Share Market News