On Monday I looked at three shares that brokers have named as buys this week.
Today I thought I would look at the other side of the coin, at the shares that brokers think you should sell.
Here are three ASX shares to sell according to leading brokers:
Australian Pharmaceutical Industries Ltd (ASX: API)
According to a note out of Credit Suisse, it has retained its sell rating and $1.55 price target on this pharmacy chain operator and distributor's shares after it made a proposal to merge with rival Sigma Healthcare (ASX: SIG). While the broker believes that consolidation would improve profitability, it suspects there is a high chance that the ACCC will block such a move. It reminds investors that the competition watchdog has previously blocked a merger of the two companies a number of years ago.
Inghams Group Ltd (ASX: ING)
Analysts at Citi have downgraded this poultry producer's shares to a sell rating from neutral with a price target of $3.85. According to the note, the broker has concerns that Inghams' could face significant cost headwinds in the second half. This could prove to be a bigger problem than normal as it believes the company may need to invest heavily in marketing and product development in order to support its future growth.
Ramsay Health Care Limited (ASX: RHC)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $49.00 price target on this private hospital operator's shares. According to the note, the broker has held firm with its rating despite lifting its earnings forecasts slightly to account for the depreciation of the Australian dollar. Goldman remains bearish on Ramsay due to the challenging trading conditions that the majority of its businesses are facing. In addition to this, it has previously warned that the company's entry into new markets with the Capio AB acquisition could be a distraction at a time when the rest of the business needs attention.
