With a seemingly endless number of quarterly and half-year updates being released recently, brokers up and down Australia have no doubt been busy adjusting their discounted cash flow models accordingly.
Whilst some shares have come out of this with upgrades, others haven't fared so well. Here are three shares which brokers have labelled as sells today:
Idp Education Ltd (ASX: IEL)
A research note out of Credit Suisse reveals that its analysts have slapped an underperform rating and $4.00 price target on the education company's shares. According to the note Credit Suisse believes that Idp Education's shares are expensive considering the potential risks around regulatory changes. At 25x annualised earnings I would agree that its shares are a touch expensive. Whilst I would not necessarily be in a rush to sell, I wouldn't be a buyer at today's price.
Genworth Mortgage Insurance Australia (ASX: GMA)
Prior to today's market update, UBS released a research note downgrading Genworth Mortgage Insurance's shares to a sell rating with a $2.60 price target. That market update proved to be a disappointing one with management advising that it expects its net earned premium to decline by between 10% and 15% in 2017. Furthermore, it has forecast the full-year loss ratio to be between 40% and 50%. As I'm bearish on the housing market, I would have to agree with UBS on this one.
Woolworths Limited (ASX: WOW)
Analysts at Macquarie have downgraded the retail giant to an underperform rating with a $26.20 price target following yesterday's third-quarter update. According to the note its analysts believe that the market is overly optimistic on its turnaround amid increasing competition. Whilst I wouldn't be a buyer at the current share price, I was reasonably impressed with its performance during the quarter. The Big W business may continue to disappoint, but the rest of the business appears to be improving.
