Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling very positive about these ASX shares…

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business man holding sign stating time to sell

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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:

Cleanaway Waste Management Ltd (ASX: CWY)

According to a note out of Credit Suisse, its analysts have downgraded this waste management company’s shares to an underperform rating and trimmed the price target on them to $2.40. The broker made the move after looking through its Suez acquisition plans. While it doesn’t expect any regulatory issues with the acquisition, it appears to be cautious and waiting for signs of success before getting carried away with its earnings estimates. In the meantime, the broker believes its shares are overvalued at the current level. The Cleanaway share price ended the week at $2.66.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut the price target on this pizza chain operator’s shares to $70.71. Credit Suisse has been looking into web traffic to Domino’s businesses. It notes that there has been a sharp slowdown in traffic to its Australian websites, which has sparked downgrades to the broker’s like for like sales growth estimates. And while its international operations are still performing well, it’s not enough for the broker to become more positive. The Domino’s share price was last trading notably higher than this price target at $115.30.

Fortescue Metals Group Limited (ASX: FMG)

Analysts at Morgans have downgraded this iron ore producer’s shares to a reduce rating with a lowered price target of $18.70. The broker made the move largely on the belief that the company is particularly sensitive to a maturing iron ore cycle. In addition to this, it suspects that Fortescue could fall short of its cost expectations due to cost pressures in Western Australia. Overall, it believes the risk/reward balance for Fortescue is finally skewed to the downside. The Fortescue share price ended the week at $23.22.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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