On Thursday I had a look at a number of shares which brokers are bullish on and had recently given buy ratings.
Today I thought I would look at the unfortunate shares that brokers are bearish on and are tipping as sells. Here they are:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Morgan Stanley, the investment bank's analysts have retained their underweight rating and cut the price target on the travel agent's shares to $38.00. The broker believes that Flight Centre will be negatively impacted if higher mortgage rates result in consumers cutting back on traveling. While I think Flight Centre is a quality company, I wouldn't be a buyer of its shares at current levels. Because of this, I'm inclined to agree with Morgan Stanley at this point.
QBE Insurance Group Ltd (ASX: QBE)
Analysts at Credit Suisse have retained their underperform rating and $11.00 price target on the insurance giant's shares following its catastrophe claims related profit downgrade earlier this week. Although the insurance giant's shares are now trading well below the broker's price target, I still see more value in some of its industry rivals. In light of this, I would continue to stay away from the struggling insurer.
SYNLAIT FPO NZX (ASX: SM1)
A note out of Deutsche Bank reveals that its analysts have downgraded the dairy processor to a sell rating with a NZ$6.00 (A$5.47) price target. While it believes that the strong demand for a2 Milk Company Ltd (Australia) (ASX: A2M) products is likely to result in an earnings upgrade, the broker still finds it hard to find value in its shares at the current price. While I agree that its shares do look expensive now, I think a2 Milk's growth could end up justifying the premium. I would class it as a hold.
