Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling very positive about these shares…

| More on:
Keyboard button with the word sell on it.

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

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 investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

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. While Credit Suisse is expecting ARB to deliver a strong half year result in February, it isn’t enough for a more positive rating. The broker suspects that the company’s margins could soften and its growth could slow thereafter. As a result, it finds it hard to justify the multiples its shares trade on. The ARB share price was trading at $45.59 at Friday’s close.


A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this stock exchange operator’s shares to $82.30. While the broker acknowledges that ASX has attractive qualities for long term focused investors, it still doesn’t see enough value in its shares to warrant a more positive rating. The broker continues to believe its shares are expensive in comparison to global peers. The ASX share price ended the week at $91.20.

Fortescue Metals Group Limited (ASX: FMG)

Another note out of Citi reveals that its analysts have downgraded this iron ore miner’s shares to a sell rating with a $17.20 price target. The broker made the move on valuation grounds following a strong share price rise over the last couple of months. Citi notes that this has been driven by a better than expected iron ore price. However, it believes its shares are overvalued now, particularly in comparison to peers. The Fortescue share price was fetching $21.37 at Friday’s close.

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 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

A man sits at a desk holding a small replica house in his hand, upset at the sale of his property.
Broker Notes

Why did the Goodman share price suffer a sell-off in June?

June was a difficult month for many ASX shares, including Goodman.

Read more »

A little boy surrounded by green grass and trees looks up at the sky, waiting for rain or sunshine.
Bank Shares

Could the CBA share price turn over a new leaf in July?

Here's what brokers are thinking about the big four ASX bank.

Read more »

Happy woman looking through two doughnuts like binoculars
Technology Shares

Should investors zero in on the Xero share price in July?

Is this ASX tech share now too cheap to ignore?

Read more »

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 »