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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:

Adbri Ltd (ASX: ABC)

According to a note out of Morgan Stanley, its analysts have downgraded this building products company’s shares to an underweight rating and cut the price target on them to $3.30. The broker believes the company’s shares are fully valued given its reasonably subdued growth outlook. In light of this, it feels there are better options elsewhere in the sector for investors right now. The Adbri share price has tumbled below this price target to $3.11 on Thursday afternoon.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate’s shares to $20.80. According to the note, the broker doesn’t expect Premier Investments’ strong form to last beyond FY 2021. Goldman is forecasting earnings per share of $1.40 in FY 2021 but then $1.03 in FY 2022 and $1.09 in FY 2023. As a result of this, it feels its shares are expensive compared to peers based on its forwards earnings estimates. The Premier Investments share price is down to $24.63 this afternoon.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and cut the price target on this plumbing parts company’s shares to $3.70. According to the note, the broker believes that risks are to the downside for its earnings. This is due to COVID lockdowns impacting demand and an increase in copper prices. The Reliance share price is trading at $3.86 on Thursday.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. 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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