Warning! Why you should sell CBA and these ASX shares asap

Analysts are feeling bearish about these shares.

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Key points

  • Analysts at Medallion recommend selling Commonwealth Bank of Australia shares due to high valuation and concerns over moderating loan growth and peaked net interest margins.
  • Endeavour Group shares are advised for sale by Red Leaf Securities, citing operational challenges, subdued consumer spending, and potential guidance downgrades impacting the drinks giant.
  • SGH is seen as a sell by Red Leaf Securities due to its high valuation despite solid operational execution, suggesting investors might consider taking profits after significant share price gains.

Knowing which ASX shares to sell can be just as important as knowing which ones to buy.

After all, if you hold onto some bad eggs for too long, your portfolio could struggle to keep up with the market.

With that in mind, courtesy of The Bull, let's take a look at three ASX shares that analysts are tipping as sells. They are as follows:

Commonwealth Bank of Australia (ASX: CBA)

Analysts at Medallion are bearish on Australia's largest bank and thinks investors should be selling its shares.

They highlight that CBA shares trade a significant premium to peers at a time when loan growth is moderating and net interest margins appear to have peaked. Medallion said:

CBA is Australia's strongest major bank, boasting market leadership, exceptional profitability and a rock solid balance sheet, but its valuation has run ahead of fundamentals. Given a recent price/earnings ratio of about 27 times, the stock trades at a significant premium to peers, such as National Australia Bank and ANZ. We expect earnings momentum to subside as loan growth moderates and net interest margins peak.

Endeavour Group Ltd (ASX: EDV)

Over at Red Leaf Securities, its analysts aren't recommending the beaten down shares of this drinks giant. Instead, they think investors should be selling them.

The broker highlights that the Dan Murphy's owner is facing persistent operational challenges and could be forced to downgrade its guidance. It explains:

Endeavour operates liquor outlets, hotels and gaming facilities. Group sales of $12.1 billion in full year 2025 were down 0.3 per cent on the prior corresponding period. Net profit after tax of $426 million was down 15.8 per cent. Subdued consumer spending in retail liquor and the impact of supply chain disruption contributed to the weaker result. The company faces persistent operational challenges and possible guidance downgrades as leadership assesses the business and implements changes. The shares remain under pressure. We suggest investors consider selling some stock until a clearer picture of a recovery emerges in the business.

SGH Ltd (ASX: SGH)

Red Leaf Securities is also bearish on this diversified investment company and thinks its shares are a sell.

This recommendation is based largely on valuation grounds after a strong rise over the past two years. The broker said:

This diversified company has businesses across industrial services, energy and media. It has a strong management team. Revenue of $10.7 billion in fiscal year 2025 was up 1 per cent on the prior corresponding period. Net profit after tax of $924 million was up 9 per cent. While operational execution is solid, the stock has traded up to a level where analysts see better opportunities elsewhere. Parts of the business are cyclical, which can be positively or negatively influenced by economic and business conditions. In our view, the company's high valuation presents an opportunity for investors to consider taking some profits. The shares have risen from $26.78 on October 16, 2023, to trade at $48.48 on October 16, 2025.

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 no position in any of the stocks mentioned. 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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