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:
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Magellan Financial Group Ltd (ASX: MFG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating but lifted their price target on this fund manager's shares slightly to $48.00. Although Magellan delivered a result largely in line with expectations and is looking to broaden its offering with new product launches, it isn't enough for a change in rating. Morgan Stanley continues to believe that its shares are expensive in comparison to its global peers. The Magellan share price ended the week at $65.36.
Sonic Healthcare Limited (ASX: SHL)
Analysts at UBS have retained their sell rating and $28.00 price target on this healthcare company's shares ahead of its full year results. According to the note, the broker expects Sonic Healthcare to deliver solid top line growth, but a 7% decline in earnings in FY 2020. And while it looks set to benefit from strong COVID-19 testing demand, it fears this may be offset by weakness in other areas. In light of this, it feels its shares are fully valued and retains its sell rating. Sonic Healthcare's shares last traded at $34.03.
WiseTech Global Ltd (ASX: WTC)
A note out of Citi reveals that its analysts have downgraded this logistics solutions company's shares to a sell rating with a reduced price target of $18.40. The broker made the move after revising its earnings estimates lower to reflect the challenging economic environment and slowing M&A activity. It expects this to weigh on its revenue growth in the near term. The WiseTech share price ended the week at $19.93.
