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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Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Citi, its analysts have retained their sell rating and cut their price target on this iron ore giant's shares to $17.00. This follows the release of a second quarter update which fell short of the broker's expectations. This was particularly the case with iron ore price realisations, which have continued to weaken. Outside this, the broker believes the market is too optimistic on the Fortescue Future Industries business. The Fortescue share price ended the week at $19.45.
Premier Investments Limited (ASX: PMV)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this retail giant's shares to $23.60. While Premier Investments delivered a half year update ahead of the broker's expectations, this was largely due to rental benefits. Without this, the result would have been in line with its estimates. In light of this and its long term concerns over the Smiggle business, the broker hasn't seen enough to change its rating. The Premier Investments share price was fetching $28.40 at Friday's close.
Qantas Airways Limited (ASX: QAN)
Analysts at Credit Suisse have retained their underperform rating and cut their price target on this airline operator's shares to $4.40. The broker has reduced its earnings estimates to reflect rising oil prices. Its analysts have also warned that oil prices could get to US$100 a barrel, which could weigh on its margins. The Qantas share price ended the week at $4.73.
