Leading brokers name 3 ASX shares to sell today

Here’s why brokers aren’t feeling positive about these ASX shares…

| More on:
hand drawing a clock face with the words time to sell

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Yesterday we looked at three ASX shares 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:

ARB Corporation Limited (ASX: ARB)

According to a note out of Credit Suisse, its analysts have downgraded this 4×4 parts company’s shares to an underperform rating with a $38.00 price target. Although the broker expects a strong half year result from ARB next month, it suspects that its growth thereafter could slow and its margins could soften. In light of this, it believes its shares are trading at too much of a premium. The ARB share price is trading at $47.64 this afternoon.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Citi reveals that its analysts have downgraded this iron ore giant’s shares to a sell rating with a $17.20 price target. The broker made the move largely on valuation grounds. While Citi acknowledges that iron ore prices have been more favourable than it was expecting, it still believes its current valuation is unjustifiable. The Fortescue share price is fetching $20.80 today.

Insurance Australia Group Ltd (ASX: IAG)

Analysts at Morgan Stanley have retained their underweight rating and $3.75 price target on this insurance company’s shares. According to the note, the broker suspects that IAG may need to increase its home and motor insurance pricing to protect its margins from claims inflation and higher natural catastrophe costs. It appears concerned that this could weigh on its performance and market share. The IAG share price is trading at $4.38.

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended ARB Corporation Limited. 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

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers are feeling positive about these ASX shares...

Read more »

Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies
Energy Shares

Broker names 2 of the best ASX energy share to buy in FY23

These energy shares could be buys for FY 2023...

Read more »

digital screen of bar chart representing asx tech shares
Technology Shares

Broker names 3 of the best ASX tech share to buy in FY23

These tech shares could be buys in FY 2023...

Read more »

a man wearing a hard hat and a high visibility vest stands with his arms crossed in front of heavy equipment at a mine site.
Broker Notes

Should investors dig the Fortescue share price in July?

Fortescue is suffering in the sell-off. Will things get better in July?

Read more »

3 asx shares to buy depicted by man holding up hand with 3 fingers up
Broker Notes

Broker names 3 of the best ASX shares to buy in July

These three ASX shares are highly rated this month...

Read more »

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks
Broker Notes

Brokers name 3 ASX shares to buy today

Brokers are bullish on these ASX shares...

Read more »

Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market
Technology Shares

Why this top broker just slapped a buy rating on Xero shares

Xero shares could be great value according to Morgans...

Read more »

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Broker Notes

Top broker names 3 of the best ASX 200 shares to buy in FY23

These ASX 200 shares have been named as some of the best shares to buy in FY 2023...

Read more »