Motley Fool Australia

Top brokers name 3 ASX shares to sell today

ASX shares to avoid

On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Estia Health Ltd (ASX: EHE)

According to a note out of Morgan Stanley, its analysts have downgraded this aged care operator’s shares to an underweight rating with a reduced price target of $1.50. The broker made the move after downgrading its earnings estimates for Estia Health. It believes that the company’s earnings will remain challenged until the Royal Commission into the sector is finalised. The Estia Health share price is trading at $1.72 today.

News Corporation Class B Voting CDI (ASX: NWS)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and US$15.00 price target on this media giant’s US listed shares. While the broker acknowledges that potential changes in Australia, in relation to social media companies paying for content, could be a big positive for the company, it isn’t enough for a change of rating. The broker continues to believe that News Corp’s shares are overvalued and its earnings outlook is challenging. The US listed shares of News Corp last traded at US$17.64, which implies potential downside of approximately 15%.

St Barbara Ltd (ASX: SBM)

Analysts at Macquarie have retained their underperform rating and $2.40 price target on this gold miner’s shares. This follows the company’s investor briefing, which highlighted new opportunities at its Gwalia mine. The broker notes that the company intends to undertake a new province strategy to fill its under-utilised mill and then develop provincial open pit and historic stockpile opportunities. While this has the potential to be a positive, it isn’t enough to sway Macquarie. It is holding firm with its bearish rating for the time being. The St Barbara share price is fetching $2.48 on Thursday afternoon.

Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.