Top brokers name 3 ASX shares to sell next week

Top brokers have named Commonwealth Bank of Australia (ASX:CBA) and these ASX shares as sells for next week. Here’s why they are bearish…

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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:

AGL Energy Limited (ASX: AGL)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this energy company’s shares to $9.50. The broker made the move after AGL announced multi-billion asset impairments last week. A good portion of these were for onerous contracts relating primarily to legacy wind farm offtake agreements. The company also spoke very negatively about the outlook for wholesale electricity prices. The AGL share price ended the week at $11.39.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgans reveals that its analysts have retained their reduce rating and lowly $64.00 price target on this banking giant’s shares. The broker believes that Commonwealth Bank’s shares are overvalued at the current level. In light of this, it expects them to underperform the other major banks. Especially when trading conditions return to relatively normal. It feels that CBA has benefited from the perception of it being the lowest risk bank. However, it suspects that investors will soon start to place less emphasis on risk profiles and pay more attention to valuations. The Commonwealth Bank share price last traded at $88.64.

Macquarie Group Ltd (ASX: MQG)

Analysts at Citi have downgraded this investment bank’s shares to a sell rating and cut the price target on them to $120.00. According to the note, the broker is a fan of the company and sees opportunities for long term growth. However, it suspects that the market is expecting too much from the company in the near term. Particularly given the headwinds it is facing from a stronger Australian dollar and low commodity price volatility. It also feels that potential tax increases in the US would be bad news for the bank. The Macquarie share price ended the week at $134.52.

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