Health supplements company Blackmores Limited (ASX: BKL) and furniture retailer Nick Scali Limited (ASX: NCK) may have found favour with brokers this week, but not all shares on the market were so lucky.
Listed below are two shares which brokers have given sell ratings to this week Here's why:
Domino's Pizza Enterprises Ltd. (ASX: DMP)
According to a note out of Deutsche Bank, its analysts have retained their sell rating and $36.00 price target on the pizza operator's shares after it announced an agreement to buy Bain Capital's remaining stake in Domino's Pizza Japan for $42 million. While Deutsche isn't bullish on the deal, Morgan Stanley is. It expects the deal to be accretive to FY 2018 earnings. As a result, it retained its overweight rating and $53 price target. I would side with the Morgan Stanley's view and continue to believe it is a good long-term investment.
Newcrest Mining Limited (ASX: NCM)
A note out of UBS reveals that its analysts have retained their sell rating on the leading gold miner following its quarterly production update. While the broker increased its price target to $13.40, this is still almost 39% lower than its current share price. According to the note, although UBS was pleased to see Newcrest's struggling Cadia operation outperform, its Telfer operation acted as a drag on its performance. Whilst I think Newcrest is one of the highest quality miners on the ASX, I would agree with UBS that it is vastly overvalued. In light of this, I would suggest investors avoid it until it trades at a more reasonable valuation.
