On Thursday I took a look at a couple of shares which leading brokers had slapped buy ratings on this week.
Today I thought I would take a look at the unfortunate shares which haven't found favour with brokers this week and have been given sell ratings. Here are three in particular that caught my eye:
Commonwealth Bank of Australia (ASX: CBA)
According to a research note out of Citi, its analysts have reiterated their sell rating but increased their price target on its shares to $76.50. Based on its last close price, this implies downside risk of approximately 6% for its shares. The broker appears to believe that many of FY 2017's growth drivers will weaken during the year ahead. Whilst I am a fan of the bank, I'm not a fan of its valuation. In light of this, I would have to agree with Citi that the bank is a sell right now.
Seven West Media Ltd (ASX: SWM)
A note out of the equities desk at Macquarie reveals that its analysts have downgraded the media company to an underperform rating with a 75 cents price target. The broker believes that Seven could struggle due to a soft advertising market and improved programming from rival Nine Entertainment Co Holdings Ltd (ASX: NEC). Furthermore, with the AFL and tennis rights up for renewal soon, Macquarie is concerned that it may see its costs increase. As I'm not a fan of media shares like Seven or Nine due to the rise of Netflix and other on-demand services, I would side with Macquarie on this one.
Telstra Corporation Ltd (ASX: TLS)
On the eve of its full-year earnings release, analysts at Morgan Stanley reiterated their underweight rating and reduced their price target on the telco giant's shares to $4.00. The broker has made this move after factoring in the impact of the launch of a fourth mobile network by TPG Telecom Ltd (ASX: TPM) into its forecasts. Despite this launch I still feel Telstra could be a good buy and hold option for investors, especially with its strong dividend. However, I would suggest waiting until its full-year results have been absorbed by the market before making a move.
