Cash 'em in! Broker recommends 2 ASX 200 shares to sell

These ASX 200 shares have had amazing runs of late, which is why this expert says it's time to sell.

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Key points

  • Jed Richards from Shaw and Partners advises selling two ASX 200 shares, Harvey Norman and Coles, after significant share price increases.
  • Harvey Norman shares hit a new record high of $7.57 on 1 September; Richards says the price now seems stretched with limited near-term catalysts.
  • Coles shares also hit a new record high of $24.28 on 1 September, and Richards believes the stock has overshot, suggesting investors might lock in profits.

S&P/ASX 200 Index (ASX: XJO) shares closed 0.4% higher at 8,845.9 points on Tuesday.

On The Bull this week, Jed Richards from Shaw and Partners put sell ratings on two ASX shares that have had amazing price runs of late.

While Richards is generally positive on these companies, he sees little short-term upside ahead after such strong share price growth.

Therefore, it may be time to take profits, if this suits your personal investment goals.

Here are the two ASX 200 shares.

2 ASX 200 shares up 23% to 45% in six months

Harvey Norman Holdings Ltd (ASX: HVN)

Harvey Norman shares closed 1.37% higher at $7.40 apiece on Tuesday.

The Harvey Norman share price has risen 45% over six months, and hit a new record high of $7.57 on 1 September.

Jed Richards from Shaw and Partners has a sell rating on this ASX 200 consumer discretionary share.

He explained why:

We suggest investors consider locking in some gains after a strong rally. 

While the company has performed well, the recent share price appears stretched.

In our opinion, near term catalysts are limited at this point.

Richards noted that Harvey Norman revealed a reported profit before tax of $753.1 million in FY25, up 39% on FY24.

The company's total assets rose above $8 billion in valuation for the first time, totalling $8.37 billion as of 30 June.

The ASX 200 retailer will pay a 14.5-cent per share final dividend on 3 November. The ex-dividend date is 6 October.

Coles Group Ltd (ASX: COL)

Coles shares closed 0.51% lower at $23.50 apiece yesterday.

The Coles share price has risen 23% over six months.

Like Harvey Norman shares, Coles stock also hit a new record high of $24.28 on 1 September.

Richards also has a sell rating on this ASX 200 consumer staples share.

The broker said:

The supermarket giant is a solid performer.

The company generated group sales revenue of $44.352 billion in fiscal year 2025, up 3.6 per cent on a normalised basis when compared to the prior corresponding period.

The group announced a reported net profit after tax of $1.079 billion, an increase of 2.4 per cent on a normalised basis.

However, Richards thinks the Coles share price has overshot.

He commented:

The share price appears stretched at these levels, particularly when compared to rival Woolworths Group Ltd (ASX: WOW).

Coles has enjoyed a strong run, so we see limited upside at this stage of the cycle.

Investors may want to consider locking in some profits and investing in other opportunities with better long term potential.

 The ASX 200 supermarket network paid a final dividend of 32 cents per share on Monday.

Motley Fool contributor Bronwyn Allen 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 positions in and has recommended Coles Group and Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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