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 Citi, its analysts have retained their sell rating and $90.75 price target on this banking giant's shares. Citi has been reviewing the banking sector ahead of potential rate hikes by the Reserve Bank. While the broker believes cash rate increases could support stronger than expected net interest margins in the near future, it isn't enough for a more positive rating on CBA. Citi continues to see its shares as expensive at the current level and believes there are better options in the sector. The CBA share price was trading at $106.50 on Thursday.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this mining giant's shares to $15.20. The broker believes Fortescue's shares are overvalued compared to its peers. Goldman also has concerns with capex and execution risks for the Iron Bridge and Fortescue Future Industries businesses. The Fortescue share price was fetching $21.61 at Thursday's close.
Pro Medicus Limited (ASX: PME)
Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and $44.80 price target on this health imaging technology company's shares. This follows news that Pro Medicus has signed a major $32 million eight-year deal with Inova Health System. Although Goldman was pleased with the deal and is a fan of the company, it believes its shares are expensive at over 50x earnings. This is especially the case given that the company does not have sufficient visibility to know if recent win-rates can be sustained. The Pro Medicus share price ended the week at $48.63.
