Top brokers name 3 ASX shares to sell next week

Brokers aren’t feeling overly positive on these shares…

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Sell buy and hold on a digital screen with a man pointing at the sell square.

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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:

Commonwealth Bank of Australia (ASX: CBA)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this banking giant’s shares to $92.00. Morgan Stanley has increased its earnings estimates for the sector to reflect higher than previously expected cash rate forecasts. The broker expects the cash rate to increase by 65 basis points this year and then by a further 1% in 2023. However, it still feels CBA’s shares are overvalued at the current level and retains its underweight rating. The CBA share price ended the week at $106.29.

Gold Road Resources Ltd (ASX: GOR)

A note out of Macquarie reveals that its analysts have downgraded this gold miner’s shares to an underperform rating with a $1.70 price target. Although the broker has increased its gold price forecasts for the near term, it isn’t enough to prevent a downgrade to underperform. Macquarie made the move on valuation grounds following recent share price strength. The Gold Road share price ended the week below this target at $1.66.

Insurance Australia Group Ltd (ASX: IAG)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.90 price target on this insurance giant’s shares. After taking the recent floods into account, Morgan Stanley has concerns that IAG is at risk of elevated catastrophe budget increases in FY 2023. It suspects that this could lead to an increase in the insurer’s cost of capital. The IAG share price was fetching $4.61 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 owns and has recommended Insurance Australia Group 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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