Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.
Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating and trimmed the price target on this payments company's shares to $17.90. UBS has been looking into the global economy and the buy now pay later market. It appears concerned that higher unemployment levels could lead to increasing bad debts in the short term. It feels this could weigh on Afterpay's bottom line. The Afterpay share price ended the week at $23.24.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Citi have retained their sell rating and $49.80 price target on this pizza chain operator's shares. According to the note, the broker continues to believe that its shares are overvalued and have not deservedly re-rated over the last 12 months. The broker suspects that the majority of its EBITDA growth in the first half was driven by asset sales and foreign exchange. The Domino's share price last traded at $55.36.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this travel agent's shares to an underperform rating and almost halved the price target on them to $17.95. According to the note, the broker made the move after downgrading its earnings estimates in response to the United States banning travel from Europe. The broker also appears concerned that the coronavirus could weigh on consumer spending. The Flight Centre share price fell heavily last week, ending it at a lowly $19.15. This compares to its 52-week high of $49.14.
