Analysts name 3 ASX shares to sell now

Let's see why they are feeling bearish about these names.

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Key points

  • Lynas Rare Earths is rated a sell by Ord Minnett, viewing the shares as overvalued despite recent revenue increases, with the price not justified by current performance.
  • Paladin Energy, also rated a sell by Ord Minnett, has a share price that has surged and outpaced its fundamentals, despite record production figures.
  • Securities Vault recommends selling Starpharma Holdings due to its steep premium valuation relative to peers and rapid share price increase, which may not be sustainable given its recent financial losses.

Knowing which ASX shares to avoid is just as important as knowing which ones to buy.

After all, owning the wrong shares could hold back your portfolio returns and limit your wealth creation.

With that in mind, let's take a look at three ASX shares analysts rate as sells, courtesy of The Bull. Here's what they are saying:

Lynas Rare Earths Ltd (ASX: LYC)

The team at Ord Minnett thinks that this rare earths producer's shares are overvalued despite a recent pullback. They said:

Lynas is the only significant producer of separated rare earths materials outside of China. Gross sales revenue of $200.2 million in the first quarter of fiscal year 2026 was up on the prior quarter and the prior corresponding period, but missed consensus. The shares have fallen from $21.64 on October 15 to trade at $15.51 on November 19. In our view, the shares remain overvalued, so investors may want to consider cashing in some gains.

Paladin Energy Ltd (ASX: PDN)

Another ASX share that has been named as a sell by analysts this week is Paladin Energy.

Ord Minnett is also bearish on this one and thinks that its valuation has outpaced its fundamentals. It said:

This uranium producer owns 75 per cent of the Langer Heinrich mine in Namibia. It also owns uranium exploration and development assets in Australia and Canada. The company delivered record production in the September quarter, but sales volumes fell on the previous quarter and prior corresponding period.  Despite a decent result, PDN's share price recently doubled in the past six months and has outpaced its fundamentals.

Starpharma Holdings Ltd (ASX: SPL)

A third ASX share that is being rated as a sell is biotechnology company Starpharma.

Analysts at Securities Vault think investors should be selling its shares after a "rapid" rise this year, which as seem them rise over 200% in 2025. They said:

Starpharma is a biotechnology company. The company has developed a drug delivery platform to enhance the effectiveness of pharmaceutical drugs. It recently received an upfront payment of $A8.5 million from Genentech in line with a recently announced licence agreement. The shares have performed strongly, rising from 13 cents on September 19 to trade at 39.5 cents on November 19. The company's valuation sits at a steep premium relative to peers, indicating lofty expectations are already priced in. The company reported a loss of $10 million in full year 2025. In our view, trimming or exiting positions is prudent given the rapid share price rise.

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 recommended Lynas Rare Earths Ltd. 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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