It has been yet another busy week of broker upgrades and downgrades on the local share market.
Three shares which have unfortunately fallen foul of Australia's leading brokers and been given sell ratings are listed below.
Here's why they are being tipped to sink lower:
Computershare Limited (ASX: CPU)
A note out of Deutsche Bank reveals that its analysts have retained their sell rating and $13.00 price target on Computershare's shares despite it lifting its profit guidance this week. The company now expects its Management earnings to be 10% higher year-on-year, compared to previous guidance of 7.5%. But Deutsche Bank continues to believe that its mortgage servicing margins will disappoint and weigh on its performance in the medium term.
DuluxGroup Limited (ASX: DLX)
According to a note out of UBS, its analysts have retained their sell rating on the paint company's shares following the release of its full-year results. However, in light of its outperformance, UBS has lifted the price target on Dulux's shares to $6.30. This price target does still imply potential downside of over 21% for its shares, though. The broker appears to believe its shares are overvalued given its limited scope for continued outperformance. While I wouldn't necessarily class it as a sell, I wouldn't be a buyer at today's share price.
Incitec Pivot Ltd (ASX: IPL)
Analysts at Credit Suisse have downgraded the chemicals and explosives company's shares to an underweight rating with a $3.49 price target following its full-year results release. The broker believes that Incitec Pivot's shares are expensive, especially with the fertiliser market expected to weaken. I would have to agree with Credit Suisse on this one. I think there are far better options in the sector at the moment that offer greater risk/rewards.
