Many of Australia's leading brokers have been busy again this week running the rule over a number of shares that have been in the news.
Three which haven't come out favourably are listed below. Here's why they have had sell ratings placed on them:
Bendigo and Adelaide Bank Ltd (ASX: BEN)
According to a note out of UBS, its analysts have retained their sell rating and reduced the price target on the regional bank's shares to $10.50 following its annual general meeting yesterday. The broker appears to have been disappointed by weaker-than-expected commentary from the bank's managing director and has subsequently reduced its earnings forecasts. Like I said yesterday, I think the bank's shares look reasonably priced, but given its weak first-half outlook I would wait to see if its full-year outlook improves when it releases its half-year update next year.
Harvey Norman Holdings Limited (ASX: HVN)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.50 price target despite ASIC advising that it will not look further into its accounting practices. This negative note hasn't held back the retailer's shares, though. Harvey Norman has been one of the best performers on the market today with a 7% jump higher. However, with Amazon due to launch in the near future, it isn't a company I would want in my portfolio.
Woolworths Limited (ASX: WOW)
Although the market has responded positively to the retail conglomerate's latest sales update, analysts at Macquarie certainly haven't. A note out of the Macquarie equities desk reveals that it has retained its underperform rating and reduced the price target on its shares to $25.39 following the update. While I'm not as bearish as Macquarie, I would suggest investors resist an investment for now and wait to see if its solid sales growth during the quarter came at the expense of margin.
