When it comes to investing in the Australian Securities Exchange (ASX), knowing which shares to avoid can be just as crucial as identifying those to buy. Analysts often highlight certain stocks that may not be the best choices at a given time, based on various factors such as market conditions, company performance, and economic trends. Here are three ASX shares that analysts are currently recommending investors to sell.
Centuria Industrial REIT (ASX: CIP)
One of the key recommendations from Investor Pulse is to sell shares in Centuria Industrial REIT. This industrial property company has a significant portfolio of 85 high-quality assets and has shown growth, including a major expansion of a 40 megawatt data centre. However, concerns about industrial rent growth and the impact of rising interest rates have led analysts to suggest caution.
The company’s $3.9 billion portfolio maintains a high occupancy rate of 95.7 per cent and a weighted average lease expiry of 7.1 years. Despite these positive metrics, the broader economic environment presents challenges. The market is becoming increasingly wary of industrial rent growth, especially with a potential supply issue expected to peak in mid-2026. This could affect historically low vacancy rates in urban markets. Rising interest rates on debt also pose a risk for the company.
DigiCo Infrastructure REIT (ASX: DGT)
Morgans analysts have also flagged DigiCo Infrastructure REIT as a stock to sell. While there is positive demand for data centres, the broker is waiting for management to deliver consistent results before becoming more optimistic. This caution is particularly relevant given the company’s poor first-half performance in fiscal year 2026.
DigiCo operates across Australia and North America and requires significant capital expenditure to expand in a competitive environment. The company’s first-half results and full-year profit forecasts fell short of investor expectations. Although the outlook for data centres is gradually improving, management will need to show tangible progress to gain meaningful investor confidence.
Shares in DigiCo were priced at $5 during its initial public offering before listing on the ASX on December 13, 2024. As of April 2, 2026, the shares were trading at $1.89, indicating a significant drop in value.
Endeavour Group Ltd (ASX: EDV)
Investor Pulse is also advising investors to sell shares in Endeavour Group Ltd. This drinks giant has faced a challenging first half of the fiscal year, raising concerns about potential further declines in earnings. Analysts may need to revise their earnings estimates in the coming months if the company continues to underperform.
Endeavour operates liquor outlets, hotels, and gaming facilities. Its first-half results for fiscal year 2026 showed a decline in underlying group earnings before interest and tax, despite an increase in group sales. The retail division, which includes Dan Murphy’s and BWS, experienced a significant drop in earnings. Statutory net profit after tax also fell due to significant items impacting the company’s performance.
Downward revisions in consensus earnings per share suggest that the company may not have reached the bottom of its performance cycle yet.
Additional Considerations
For investors considering whether to invest in Centuria Industrial REIT, it is important to note that some experts may not recommend this stock at the current time. For example, Motley Fool investing expert Scott Phillips has highlighted five other stocks that he believes may be better buys. These recommendations are based on thorough research and analysis, and they reflect the current market conditions and investment opportunities.
Investors should always conduct their own research and consider their financial goals and risk tolerance before making any investment decisions. It is also advisable to consult with a qualified financial advisor to ensure that any investment aligns with personal financial objectives.
By staying informed and carefully evaluating the risks and opportunities associated with each investment, investors can make more informed decisions and potentially achieve better long-term outcomes.
