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:
Magellan Financial Group Ltd (ASX: MFG)
A note out of the Macquarie desk reveals that its analysts have downgraded this fund manager’s shares to an underperform rating with an improved price target of $57.50. Although Magellan has been growing its funds under management and delivered strong performance fees, it appears concerned with its lofty valuation. In light of this, it has downgraded its shares on valuation grounds. The Magellan share price ended the week at $58.56.
Scentre Group (ASX: SCG)
Analysts at Citi have retained their sell rating and cut the price target on this shopping centre operator’s shares to $2.06. According to the note, the broker expects earnings season to be very messy for Scentre and its real estate peers. It is particularly concerned about the prospects of retail property companies because of the pandemic and suspects that they could disappoint the market next month. The Scentre share price last traded at $2.11.
TPG Telecom Ltd (ASX: TPG)
According to a note out of Credit Suisse, its analysts have reinitiated coverage on this newly merged telco with an underperform rating and $7.35 price target. The broker has been looking over its business and appears concerned that the pandemic could weigh on its performance. This is particularly the case with mobile service sales and revenues from roaming. In light of this, it is predicting a step down in its earnings. The TPG Telecom share price ended the week at $8.02.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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