Top brokers name 3 ASX shares to sell next week

Top brokers have named Appen Ltd (ASX:APX) 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:

Appen Ltd (ASX: APX)

According to a note out of Macquarie, its analysts have downgraded this artificial intelligence services provider’s shares to an underperform rating and cut the price target on them to $19.00. The broker made the move amid concerns that Appen could be losing market share due to increased competition. It suspects this could lead to consensus downgrades once its challenging outlook is understood better by the market. The Appen share price ended the week at $21.60.

Bendigo and Adelaide Bank Ltd (ASX: BEN)

Analysts at Morgan Stanley have retained their underweight rating but lifted the price target on this regional bank’s shares to $9.90. This follows the release of a half year result which went down well with the broker. And while this has led to the broker upgrading its earnings estimates for the coming years, it isn’t enough for a change of rating. It continues to see more value in other bank shares. The Bendigo and Adelaide Bank share price last traded at $10.03.

Wesfarmers Ltd (ASX: WES)

A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this conglomerate’s shares to $45.00. According to the note, the broker was pleased with Wesfarmers’ strong half year result. It appears confident there will be more of the same in the second half due to favourable trading conditions. However, it feels that this is already factored into its shares and sees no reason to change its recommendation at this point. The broker also has concerns that Wesfarmers could be struggling to find suitable acquisitions. The Wesfarmers share price ended the week at $54.01.

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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 Appen Ltd. The Motley Fool Australia owns shares of Wesfarmers 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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