Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling very positive about these 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 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.

ASX Ltd (ASX: ASX)

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.

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