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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Appen Ltd (ASX: APX)
According to a note out of Macquarie, its analysts have retained their underperform rating and slashed their price target on this AI data services company's shares by 40% to $5.70. This follows the release of a full year result that fell short of expectations. In addition, Macquarie notes that management is no longer providing short term guidance. Overall, it sees little by way of positive catalysts on the horizon to boost investor sentiment and its shares. The Appen share price ended the week at $6.64.
Blackmores Limited (ASX: BKL)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this health supplements company's shares to $73.16. Citi notes that Blackmores fell well short of expectations during the first half and suspects the second half could be just as weak. This has led to the broker cutting its estimates materially. Outside this, Citi has concerns over the low barriers to entry in its core markets and doesn't believe this risk is priced into its shares. The Blackmores share price was fetching $75.31 at the end of the week.
Nanosonics Ltd (ASX: NAN)
Analysts at Goldman Sachs have retained their sell rating and cut their price target on this infection prevention company's shares to $3.40. As well as being disappointed with its half year update, Goldman has concerns over the company's transition away from GE Healthcare to a new direct sales model. It suspects the GE de-stocking cycle could extend into FY 2023, has concerns that not all GE customers will transition in a timely manner, and sees potential for cost lumpiness. The Nanosonics share price ended the week at $4.16.
