Leading brokers name 3 ASX shares to sell today

Leading brokers have named A2 Milk Company Ltd (ASX:A2M) and these ASX shares as sells this week. Here’s why they are bearish…

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Business man marking Sell on board and underlining it

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

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and slashed the price target on this infant formula company’s shares to $5.00. The broker made the move in response to a2 Milk’s fourth guidance downgrade of FY 2021 on Monday. Credit Suisse isn’t counting on a swift recovery. It believes that China’s declining birth rate, a shift towards domestic Chinese brands, and fundamental changes in the daigou channel could impede its sales recovery. The A2 Milk share price is fetching $5.75 today.

Goodman Group (ASX: GMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but increased their price target on this commercial property company’s shares to $13.16. This follows the release of Goodman’s third quarter update last week. Goldman notes that Goodman has held firm with its guidance for FY 2021. It is also forecasting development work in progress above $10 billion by the end of June. This compares to the broker’s forecast of $9.2 billion. And while Goldman has upgraded its earnings estimates, it still feels its shares are expensive at the current level and has held firm with its sell rating. The Goodman share price is trading at $19.17 today.    

Macquarie Group Ltd (ASX: MQG)

Analysts at Citi have retained their sell rating but lifted their price target on this investment bank’s shares to $140.00. According to the note, the broker was pleased with its strong performance during the second half. However, it has concerns over its valuation and fears the market is expecting too much from Macquarie in the near term. Particularly given the prospect of higher US taxes and interest rates. The Macquarie share price is fetching $155.41 today.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk and Macquarie. 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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