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 investors might want to hear about are summarised below. Here's why top brokers think investors ought to sell these shares next week:
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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this banking giant's shares to $81.74. This follows the release of Commonwealth Bank's first-quarter update, which fell short of Goldman's expectations. The broker notes that while CBA is the preeminent retail banking franchise, its update shows that it is not immune from profitability pressure. In light of this, it doesn't believe its shares deserve to trade at such a premium. The CBA share price ended the week at $97.81.
Mineral Resources Limited (ASX: MIN)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $38.70 price target on this mining and mining services company's shares. The broker remains bearish on Mineral Resources following an annual general meeting update which suggested that its margins could come under pressure due to iron ore price weakness. The Mineral Resources share price was fetching $41.38 at Friday's close.
Xero Limited (ASX: XRO)
Analysts at UBS have retained their sell rating but lifted their price target on this cloud accounting platform provider's shares to $88.00 following its half year results. While UBS was pleased with Xero's performance during the half and expects its growth to accelerate in the second half, it isn't enough for a change of rating. UBS continues to believe Xero's shares are expensive in comparison to peers. The Xero share price ended the week at $151.00.
