On Wednesday I took a look at a number of shares that leading brokers had just given buy ratings to.
Today I thought I would look at the other side of the coin at shares which brokers think you should avoid.
Here are three shares which have recently been given sell ratings:
Australian Pharmaceutical Industries Ltd (ASX: API)
Following a surprise downgrade to its full-year profit growth forecast yesterday, analysts at Credit Suisse have reiterated their underperform rating and cut the price target on the pharmacy company's shares to $1.75. As I have said previously, although I think Australian Pharmaceutical Industries looks to be good value now, I would suggest investors wait until the release of its full-year results and FY 2018 guidance.
Select Harvests Limited (ASX: SHV)
Select Harvests is another which surprised the market with a shock profit downgrade this week. According to a research note, this led to Morgans downgrading Select Harvests' shares to a reduce rating and a $4.05 price target. Its analysts appeared particularly unimpressed with the company suddenly recognising material cost pressures. I would agree with Morgans on this one and believe you'd have to be nutty to invest in the almond producer right now.
Trade Me Group Ltd (ASX: TME)
According to a note out of the equities desk at Macquarie, its analysts have downgraded Trade Me's shares to an underperform rating. Furthermore, the investment bank has cut the price target on the online marketplace provider's shares to NZ$5.00 ($4.67). Macquarie appears to believe that increased competition will mean that the company finds margin expansion hard to come by. Whilst Macquarie makes a valid point, before making a decision to buy or sell its shares I would suggest investors wait to see what management says when it announces its full-year results.
