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Top brokers name 3 ASX shares to sell next week

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:

ASX Ltd (ASX: ASX)

According to a note out of Goldman Sachs, its analysts have retained their sell rating and $68.54 price target on this stock exchange operator’s shares. This follows the release of a mixed update for the month of December and calendar year 2020. While the broker feels recent weakness in its share price means that risks are now being more appropriately reflected, its shares have not fallen enough for a change of rating. The broker still feels they are overvalued at the current level. The ASX share price ended the week at $72.75.

Dacian Gold Ltd (ASX: DCN)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and 34 cents price target on this gold miner’s shares. The broker notes that Dacian Gold outperformed its expectations in the December quarter despite facing some operational disruptions. However, due to the broker’s subdued outlook for the gold price, it isn’t in a rush to make any changes to its recommendation. The Dacian Gold share price last traded at 54 cents.

Medibank Private Ltd (ASX: MPL)

Another note out of Macquarie reveals that its analysts have downgraded this private health insurer’s shares to an underperform rating with an improved price target of $2.70. The broker expects 2021 to be a tough year for health insurance providers due to structural pressures. The broker notes that a sizeable catch up in claims is coming post-pandemic, which it feels could weigh on earnings. As such, it has cut its forecasts accordingly. The Medibank share price ended the week at $3.01.

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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.

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