With so many shares to choose from on the Australian share market, it is near impossible to keep tabs on each and every one of them. But thankfully there are brokers out there doing a lot of the hard work for you.
Here are three shares which UBS thinks you should sell today. But should you?
Ansell Limited (ASX: ANN)
A research note out of UBS this morning reveals that its analysts have downgraded the health and safety protection solutions provider's shares to a sell rating with a $24.00 price target following its decision to offload its Sexual Wellness business. Its analysts appear to be disappointed with the decision, considering it has been its fastest-growing segment. Whilst I feel Ansell has received a good price for the business, I still wouldn't be a buyer at the current share price. Considering its tepid earnings growth, I think 18x trailing earnings is reasonably expensive.
SEEK Limited (ASX: SEK)
Another note out of the investment bank this week shows that its analysts have reiterated their sell rating and $14.00 price target on the job-listing company's shares. Although its fledgling China-based Zhaopin business reported 30% growth in revenue during the March quarter, UBS wasn't overly impressed due to the prior corresponding period being a particularly weak quarter. Whilst this may be the case, I still think the growth of Zhaopin over the last two years has been very impressive. Furthermore, I expect it to continue for the foreseeable future. I wouldn't class SEEK as a sell, but at 31x trailing earnings it would have to be a hold for me.
Sigma Healthcare Ltd (ASX: SIG)
Finally, the investment bank's analysts have downgraded Sigma Healthcare from a buy rating to a sell with a 76 cents price target. This downgrade comes following the shock announcement that Sigma is taking legal action against one of its largest customers. I completely agree with UBS on this one. I feel it is very unlikely that Chemist Warehouse will renew its supply contract with the company in 2019 following the legal action. If this happens it would almost certainly leave a big gap in its future earnings.
