Top brokers name 3 ASX shares to sell next week

Top brokers have named Bubs Australia Ltd (ASX:BUB) and these ASX shares as sells for next week. Here’s why they are bearish…

| More on:
An ASX investor looks devastated as he watches his computer screen, indicating bad news

Image source: Getty Images

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:

Bubs Australia Ltd (ASX: BUB)

According to a note out of Citi, its analysts have retained their sell rating and 35 cents price target on this infant formula company’s shares. While the broker felt there were a few improvements in its third quarter update, it isn’t enough to become more positive. Not until there is clear evidence that its Daigou 2.0 strategy is delivering results. Outside this, the broker still has concerns over growing competition by domestic players in the key China market and its ability to compete with bigger players. The Bubs share price was trading at a multi-year low of 37.5 cents at the end of the week.

OceanaGold Corp (ASX: OGC)

Analysts at Macquarie have downgraded this gold miner’s shares to an underperform rating and reduced the price target on them to $2.00. This follows the release of a mixed first quarter update which revealed solid production but higher costs. Combined with a valuation that Macquarie appears to believe is looking stretched and ongoing disruption at Didipio, the broker feels investors would be better off investing elsewhere in the sector. The OceanaGold share price was trading at $2.28 at Friday’s close.

Scentre Group (ASX: SCG)

A note out of UBS reveals that its analysts have retained their sell rating and $2.65 price target on this shopping centre operator’s shares. While the broker felt that the company’s quarterly update was decent given the tough trading conditions it is facing, it was still disappointed with its cash collections. Particularly given that it suspects Scentre is collecting rent that was already recognised in 2020. In light of this, it feels its gross rental collections are actually running 8% below its forecasts. The Scentre share price ended the week at $2.74.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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. The Motley Fool Australia has recommended BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Two brokers analysing stocks.
Bank Shares

Where next for the Westpac share price?

Where is the Westpac share price heading?

Read more »

Two boys in business suits holding handfuls of money
Broker Notes

‘The stock can double’: Expert names 2 ASX shares market hasn’t woken up to

In turbulent times, it's imperative to pick the right stocks to buy. Here's a couple of suggestions from one fund…

Read more »

a man throws his arms up in happy celebration as a shower of money rains down on him.
Dividend Investing

2 ASX dividend shares with HUGE yields that experts rate as buys

These buy-rated ASX dividend shares are expected to pay big dividends.

Read more »

Man wearing green shirt and pink watch flexes his muscle. representing the strength in ASX shares at the moment
Broker Notes

Fundie reveals 3 ASX 200 shares with major pricing power to counter inflation

Which ASX 200 shares have the pricing power to beat inflation?

Read more »

A female stockbroker reviews share price performance in her office with the city shown in the background through her windows
Broker Notes

Top broker gives its verdict on the BHP share price post-demerger

BHP shares could be in the buy zone post-demerger...

Read more »

A young woman wearing a red and white striped t-shirt puts her hand to her chin and looks sideways as she wonders whether to buy Lottery Corp shares
Broker Notes

Are newly-listed Lottery Corp shares worth buying? ASX brokers weigh in

One broker says Lottery Corp provides a rare mix of defensiveness, growth, and yield.

Read more »

smiling child drinking milk from a glass, A2 milk share price rise, increase, up, A2 sales to china
Broker Notes

Low on milk? Fear not, here’s why Citi is bullish on the A2 Milk share price

US market entry has been a goal for the company for many years.

Read more »

Two young boys sit at a desk wearing helmets with lightbulbs, indicating two ASX 200 shares that a broker has recommended as buys today
Broker Notes

Guess which ASX 200 shares UBS just added to its ‘best ideas’ list

UBS explains why some ASX 200 shares can thrive in the current market volatility.

Read more »