Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling positive about these ASX shares…

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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:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. This follows news that Afterpay is offering US consumers a pay anywhere option at some of the country’s largest retailers such as Amazon and Nike. Combined, the 12 retailers account for almost half of all ecommerce volume in the US. UBS sees this as a positive move and has upgraded its sales estimates meaningfully to reflect this. Nevertheless, the broker still believes its shares are severely overvalued at the current level. The Afterpay share price was fetching $118.29 at Friday’s close.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $89.50 price target on this banking giant’s shares. According to the note, the broker expects the majority of the banks to outperform the ASX 200 over the next 12 months. This is due to their attractive valuations, positive outlook, and the continuing earnings upgrade cycle. However, this may not be the case for CBA. It feels Australia’s largest bank’s shares are overvalued at present. The Commonwealth Bank share price ended the week at $99.49.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have downgraded this investment platform provider’s shares to an underperform rating but lifted the price target on them to $16.00. According to the note, the broker made the move on valuation grounds following a strong rise over the last few months. Outside this, the broker is a fan of the company and expects it to continue winning market share in the future. The Netwealth share price was fetching $16.25 at the end of the week.

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Motley Fool contributor 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 and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. 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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