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:
Image source: Getty Images
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Citi, its analysts have retained their sell rating but lifted the price target on this pizza chain operator's shares to $59.60. While the broker was pleased with its growth in FY 2020 and notes that the new financial year has started strongly, it has concerns over a lack of operating leverage and its valuation. It notes that the company's shares are trading at a significant premium to the market average. The Domino's share price ended the week at $85.00.
InvoCare Limited (ASX: IVC)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this funeral company's shares to $9.00. This follows the release of its half year results last week. Macquarie expects the tough trading conditions to persist in the near term and has downgraded its earnings estimates accordingly. In light of this poor form, it feels a rerating to higher multiples is off the cards for some time. The InvoCare share price last traded at $10.23.
Qantas Airways Limited (ASX: QAN)
Analysts at Credit Suisse have retained their underperform rating and $3.00 price target on this airline operator's shares. According to the note, the broker believes there could be upside for its shares over the next couple of years. However, it doesn't see the current Qantas share price as an attractive entry point and thinks investors should keep their powder dry. Especially given how uncertain the recovery in travel markets is. Qantas shares were changing hands for $3.90 on Friday.
