Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling overly positive on these 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:

Accent Group Ltd (ASX: AX1)

According to a note out of Citi, its analysts have downgraded this footwear retailer’s shares to a sell rating and cut the price target on them to $2.50. The broker doesn’t believe the market is taking into account the risks the company is facing from lockdowns, potential supply chain issues, and lower stimulus compared to last year. Citi is expecting Accent to report high single digit same store sales declines during the first half of FY 2022. The Accent share price ended the week at $2.66.

AGL Energy Limited (ASX: AGL)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and slashed their price target on this energy company’s shares to $6.88. This follows the release of a full year result which revealed another sharp drop in earnings. The broker isn’t overly confident on the near term and notes the uncertainty around its demerger plans. The AGL share price was fetching $7.47 at Friday’s close.

Megaport Ltd (ASX: MP1)

Analysts at Ord Minnett have downgraded this network as a service company’s shares to a sell rating and cut the price target on them to $15.50. While its notes that Megaport finished FY 2021 with a strong quarter, its net loss for the year widened. Looking ahead, the broker has concerns that Megaport may need to invest for longer than expected to drive its growth. The Megaport share price was trading at $16.90 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 MEGAPORT FPO. The Motley Fool Australia has recommended Accent Group and MEGAPORT FPO. 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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