We may be less than two weeks away from Christmas, but brokers up and down Australia are as busy as ever adjusting their discounted cash flow models and recommendations.
Three shares which have fallen foul with brokers this week and been given sell ratings are listed below. Here's why brokers think you should sell them:
Asaleo Care Ltd (ASX: AHY)
According to a note out of Citi, its analysts have downgraded the personal care company's shares to a sell rating with a reduced price target of $1.35. The investment bank has made the move following Asaleo Care's disappointing trading update on Tuesday. That update revealed a full-year profit downgrade due to a loss of market share in the Feminine Care category. I agree with Citi that Asaleo Care is a sell and would suggest investors wait for signs of a turnaround before investing again.
AWE Limited (ASX: AWE)
Analysts at Citi have also downgraded this energy company to a sell rating after its shares rose above the Mineral Resources Limited (ASX: MIN) takeover offer price of 80 cents per share in scrip. The broker doesn't appear to believe that a better offer will come from previous bidder China Energy Reserve and Chemical Group Australia, meaning investors would be best locking in their gains today. I think Citi is spot on with this one. With its shares trading at 83 cents, I would lock in these gains rather than risk the deal closing at the 80 cents per share scrip offer.
Domain Holdings Australia Ltd (ASX: DHG)
A note out of UBS reveals that its analysts have initiated coverage on the real estate listings business with a sell rating and $3.20 price target. This sell recommendation is based on its current valuation which UBS appears to believe is excessive. While I do like the look of Domain, I would agree that its shares do look expensive at the moment. I would wait for a pull-back in its share price before contemplating an investment.
