Brokers say Mesoblast, NAB, and Pilbara Minerals shares are sells

These shares have been hit with sell ratings. But why?

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Key points

  • DP Wealth Advisory advises selling Mesoblast, citing high volatility and frequent capital raisings that contribute to its instability, suggesting more stable alternatives for investors.
  • Morgans recommends selling National Australia Bank due to its high-risk SME market focus and lack of justification for its premium valuation amidst stagnant cash earnings.
  • Despite recent gains, Morgans suggests selling Pilbara Minerals, anticipating an oversupplied lithium market that could lead to a share price correction, making it prudent to capitalize on current profits.

When it comes to investing, knowing which ASX shares to avoid can be just as important as knowing which ones to buy.

So, when analysts put sell ratings on shares, it certainly can be worth listening to what they are saying.

With that in mind, let's look at three ASX shares that analysts have just named as sells, courtesy of The Bull. Here's what they are bearish on:

Mesoblast Ltd (ASX: MSB)

The team at DP Wealth Advisory thinks that biotechnology company Mesoblast could be an ASX share to sell now.

Its analysts highlight that its shares can be highly volatile and think investors would be better off buying more stable stocks. They said:

Mesoblast develops allogenic cellular medicines for treating severe and life threatening inflammatory conditions. The company is listed on the ASX and the Nasdaq in the US. The company has been successful with its Ryoncil product since approved by the US Food and Drug Administration in late 2024. I acknowledge research and development requires a lot of spending, but MSB has undertaken numerous capital raisings during its journey amid attracting short interest, where investors bet the share price will fall. The share price can be volatile and has fallen from $3.35 on January 2 to trade at $2.305 on November 13. I prefer more stable stocks.

National Australia Bank Ltd (ASX: NAB)

Over at Morgans, its analysts have put a sell rating on this big four bank's shares.

They don't believe that NAB's growth outlook justifies its premium valuation. The broker explains:

The NAB differentiates itself from its major bank peers with its leading banking franchise involving small-to-medium sized enterprises. While this market offers higher returns than home lending, it's also higher risk. Also, regulatory capital initiatives and competition are intensifying. We don't believe NAB's growth outlook justifies its recent elevated trading multiples. Cash earnings of $7.091 billion in full year 2025 were down 0.2 per cent on the prior corresponding period.

Pilbara Minerals Ltd (ASX: PLS)

Another ASX share that Morgans is bearish on is lithium miner Pilbara Minerals.

Morgans believes that the lithium market will remain oversupplied in the medium term and suspects that its shares could give back this year's gains. As a result, it is recommending investors take profit before it is too late. The broker explains:

The share price has benefited this year from positive sentiment towards lithium companies due to stronger than expected growth in battery demand and energy storage. This led to a rebound in lithium prices. However, we believe the share price has moved well ahead of fundamentals. Despite a lithium price recovery, current price levels remain insufficient for robust cash generation. With the market appearing over supplied in the medium term, we see the risk of an equity retracement supporting our sell recommendation. The shares have risen from $1.98 on September 12 to trade at $3.61 on November 13. Given the rapid price rise, we would be inclined to lock in some gains.

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 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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