S&P/ASX 200 Index (ASX: XJO) stocks are starting the week in the green, up 0.3% in early trading today.
Arthur Garipoli of Seneca Financial Solutions has slapped a sell rating on two ASX 200 shares that he says have substantial headwinds.
Let's take a look.
Sell these 2 ASX 200 shares: expert
IDP Education Ltd (ASX: IEL)
IDP Education was the worst-performing stock of the ASX 200 in FY25, losing 76% of its value to close at $3.67 yesterday.
Policy uncertainty about international students has led to a loss of investor confidence in this stock.
In May, IDP Education told the market it expects a 28% to 30% fall in student placements and an 18% to 20% fall in language tests in FY25.
That will almost halve the company's EBIT year over year.
Today, the ASX 200 consumer discretionary stock is up 0.27% at $3.68, at the time of writing.
Courtesy of The Bull, Garipoli explains:
The company has been impacted by restrictions on student and other migrant visas across key markets.
Policy uncertainty is expected to continue into fiscal year 2026, which may impact financial performance moving forward.
While the share price has fallen to reflect the downgrade, we see better opportunities elsewhere.
Cettire Ltd (ASX: CTT)
Garipoli also has a sell rating on Cettire shares.
Last week, we recapped Cettire's 92% fall over 16 months.
The online luxury goods retailer was the No. 1 ASX All Ords stock of FY23 for share price growth at $2.96 per share.
The ASX consumer discretionary stock was on a tear back then, rising to a record $4.90 on 1 March 2024.
Today, the Cettire share price is 36.5 cents.
Garipoli said the company's challenges continue and were highlighted in a softer-than-expected trading update for 3Q FY25.
The company experienced softening demand in its established markets, notably the United States, in the third quarter of fiscal year 2025.
The adjusted EBITDA loss was $4.7 million, including a $2.1 million foreign exchange loss.
Garipoli is concerned that softer demand for luxury goods worldwide and uncertainty over the impact of US tariffs are not the only causes of this ASX 200 retail stock's fall.
He said:
We're concerned company issues are possibly becoming more structural than cyclical, increasing uncertainty about its performance outlook.
Another analyst, Jonathan Tacadena of MPC Markets, also has a sell rating on Cettire shares.
He says: "In our view, the outlook is challenging."
