Earlier this week I had a look at a few shares which have been given buy ratings by some of Australia's leading brokers.
Today I thought I would look at the unfortunate shares which have had sell ratings slapped on them. Here they are:
Regis Resources Limited (ASX: RRL)
According to a note out of the Macquarie equities desk, its analysts have downgraded the gold miner to an underperform rating with a $3.40 price target. Macquarie has done this after the Western Australian government advised of plans to increase its gold royalty from 2.5% to 3.75%. Its analysts appear to believe that Regis could be one of the most negatively impacted miners by such a move. I'm not a big fan of Regis as it stands, so I would certainly heed Macquarie's advice if the gold royalty does end up being increased.
Sigma Healthcare Ltd (ASX: SIG)
Analysts at UBS have retained their sell rating and 70 cents price target on the pharmacy wholesale and distribution company's shares following the release of its half-year results yesterday. Although Sigma delivered on its downgraded guidance and advised that it expects to return to profit growth in FY 2019, UBS remains negative on its prospects. I would agree with UBS that Sigma is one to avoid. Especially with the potential loss of a supply agreement to one of its largest customers in 2019.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Citi this week reveals that its analysts have retained their sell rating and $10.90 price target on the wine company's shares. According to the note, Citi appears doubtful that Treasury Wine can deliver a meaningful increase in underlying revenue through pricing. It notes that the price per case of wine has trended lower or been flat in all markets over the last couple of years. While I am a fan of Treasury Wine, I'm not a big fan of its valuation. At 37x trailing earnings I feel it might be best to wait for a sizeable dip before making an investment.
