On Wednesday I wrote about three shares which some of Australia's leading brokers had just slapped buy ratings on.
Today I thought I would take a look at the unfortunate shares which have been given sell ratings by brokers.
Here are three shares which brokers have named as shares to sell:
Perpetual Limited (ASX: PPT)
A research note out of Citi reveals that its analysts have downgraded the financial services company to a sell rating with a $50.25 price target. According to the note, Citi expected to see solid fund inflows during the fourth quarter. Instead, Perpetual reported net fund outflows of $1 billion for the quarter ending June 30. I would have to agree with Citi on this one. Overall I feel there are far better options in the industry for investors to choose from.
Village Roadshow Ltd (ASX: VRL)
According to another note out of Citi, its analysts have reiterated their sell rating and cut their price target on the entertainment company's shares to $3.45. Citi has highlighted increasing competition in the cinema industry and weak tourism in the Gold Coast as its main concern. The latter it believes will prolong the recovery of its theme parks business. As I said earlier this week, I think Village Roadshow's shares are very expensive given its current outlook. For this reason I would avoid the company for the time being.
Woodside Petroleum Limited (ASX: WPL)
Analysts at Credit Suisse have reiterated their underperform rating and $26.30 price target on the oil and gas producer's shares. The broker appears to have been a touch disappointed with its recent quarterly production data which was weaker than it had expected. Woodside delivered second-quarter sales revenue of US$867 million and production of 20.7 million barrels of oil equivalents, which was a quarter-on-quarter drop of 3.1% and 3.2%, respectively. As I'm bearish on oil prices in the long-term, I would have to agree with Credit Suisse on this one.
