Leading brokers name 3 ASX shares to sell today

Leading brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as sells this week. Here’s why they are bearish…

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On Monday 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 that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on these ASX shares:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and cut the price target on this infant formula and fresh milk company’s shares to $9.40. The broker expects the company to continue to struggle in the second half of FY 2021 due to ongoing weakness in the daigou channel and a resurgence in Chinese infant formula brands. It appears concerned these pressures could be structural. Incidentally, for similar reasons, the broker has reaffirmed its sell rating and 51 cents price target on Bubs Australia Ltd (ASX: BUB) shares. The a2 Milk share price is currently fetching $10.45.

Cochlear Limited (ASX: COH)

Analysts at UBS have retained their sell rating and $175.00 price target on this hearing solutions company’s shares. According to the note, the broker expects the company to report a sizeable decline in sales during the first half. This is due to foreign exchange and COVID-19 headwinds. Unfortunately, it notes that the latter isn’t easing as quickly as the company might like, which could delay the rebound in sales until FY 2022 or beyond. The Cochlear share price is trading at $206.86 today.

Medibank Private Ltd (ASX: MPL)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $2.70 price target on this private health insurance company’s shares. This follows Medibank’s investment in the Myhealth Medical Group last week. While the broker sees strategic value in the non-controlling acquisition over the long term, it isn’t enough for a change of rating right now. Macquarie remains bearish due to structural pressures and concerns over a catch up of claims. The Medibank share price is trading at $2.95 this afternoon.

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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 BUBS AUST FPO and Cochlear Ltd. The Motley Fool Australia owns shares of and has recommended A2 Milk. The Motley Fool Australia has recommended BUBS AUST FPO and Cochlear Ltd. 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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