Top brokers name 3 ASX shares to sell next week

Top brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as sells for next week. Here's why they are bearish…

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

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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)

According to a note out of Citi, its analysts have retained their sell rating and cut the price target on this infant formula company's shares to $7.15. The broker made the move following the release of a2 Milk Company's disappointing half year results. Citi has reduced its estimates materially over the coming years to reflect the demand issues it is facing in the daigou channel and margin pressures across the business. The a2 Milk Company share price ended the week at $8.99.

Appen Ltd (ASX: APX)

A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this artificial intelligence data services company's shares to $16.00. According to the note, the broker wasn't surprised that Appen fell short of expectations in FY 2020. Looking ahead, Macquarie has concerns that increased competition could weigh on pricing and lead to Appen falling short of expectations again. The Appen share price was fetching $16.69 at the end of last week.

InvoCare Limited (ASX: IVC)

Analysts at Macquarie also have retained their underperform rating and $9.30 price target on this funerals company's shares. This follows the release of a mixed full year result last week. According to the note, InvoCare fell short of expectations in FY 2020 due to one-offs. And while the broker is expecting a better performance this year, it does have concerns that rising costs could offset this. In light of this and its current valuation, it sees no reason to change its rating. The InvoCare share price ended the week at $11.23.

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 and has recommended A2 Milk. The Motley Fool Australia has recommended InvoCare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Share Gainers

These were the best-performing ASX 200 shares in March

These shares made their shareholders smile in March thanks to some very big gains.

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Opinions

2 ASX shares I have been buying in 2024!

I’m a believer in the long-term outlook of these stocks.

Read more »

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »