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Top brokers name 3 ASX shares to sell next week

hand drawing a clock face with the words time to sell
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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:

A2 Milk Company Ltd (ASX: A2M)

A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on this infant formula company’s shares to $9.40. According to the note, the broker believes the tough trading conditions a2 Milk Company is facing will persist in the second half. In addition to this, the broker has concerns over increasing demand in China from domestic brands and structural pressures in the local market. The a2 Milk share price was fetching $9.96 at Friday’s close.

AGL Energy Limited (ASX: AGL)

According to a note out of UBS, its analysts have retained their sell rating and put a $10.10 price target on this energy company’s shares. This follows the release of a half year result last week which fell short of the broker’s estimates. And while the broker notes that the company is attempting to offset the tough trading conditions by cutting costs significantly, UBS doesn’t believe it will be enough to stop its earnings from falling meaningfully in the coming years. The AGL share price ended the week at $11.05.

Galaxy Resources Limited (ASX: GXY)

Analysts at Credit Suisse have downgraded this lithium miner’s shares to an underperform rating with an improved price target of $2.10. According to the note, the broker was happy with its performance in FY 2020 and its guidance for the year ahead. However, that isn’t enough to stop Credit Suisse from downgrading its shares to underperform on valuation grounds. The Galaxy share price was trading at $2.53 at Friday’s close.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended A2 Milk. 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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