Top brokers name 3 ASX shares to sell today

Top brokers have named Macquarie Group Ltd (ASX:MQG) and these ASX shares as sells this week. Here’s why they are bearish…

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On Wednesday 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 ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

JB Hi-Fi Limited (ASX: JBH)

According to a note out of Morgan Stanley, its analysts have retained their underperform rating and $46.00 price target on this retail giant’s shares. While JB Hi-Fi’s quarterly update was in line with expectations, it isn’t enough for a change of rating. Particularly given the recent update from Kogan.com Ltd (ASX: KGN), which noted excess inventory and increasing promotional activity. The JB Hi-Fi share price is currently fetching $46.22.

Macquarie Group Ltd (ASX: MQG)

A note out of Citi reveals that its analysts have retained their sell rating and $125.00 price target on this investment bank’s shares ahead of its full year results. According to the note, the broker is expecting a solid result from Macquarie and has lifted its dividend forecast for the full year to reflect this. However, due to one-offs boosting its result this year, it suspects that the company’s guidance for FY 2022 could be for a decline in earnings. As a result, it doesn’t see value in its shares at the current level. The Macquarie share price ended the day at $160.52.

Virtus Health Ltd (ASX: VRT)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $5.05 price target on this fertility treatment company’s shares. The broker has been looking into industry data, which reveals strong growth in fresh IVF cycles so far in 2021. This bodes well for Virtus Health in the second half of FY 2021. However, it isn’t enough for a change of rating on valuation grounds. Instead, the broker sees more value in rival Monash IVF Group Ltd (ASX: MVF). The Virtus Health share price is trading at $6.04.

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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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Kogan.com ltd and Virtus Health 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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