Earlier this week I had a look at a number of shares that have found favour with brokers this week and been given buy ratings or equivalents.
Unfortunately not all shares have been so lucky. Three shares which have been given sell ratings are listed below:
Ardent Leisure Group (ASX: AAD)
According to a note out of Citi, its analysts have retained their sell rating and cut the price target on the entertainment company's shares to $1.25 following its recent update and shock CEO resignation. The broker appears concerned by the slowdown in the growth of its Main Event brand and the revolving door in the C-suite. While I wouldn't go so far as to class it as a sell, I do agree that recent developments at the company are worrying. I think Ardent Leisure is a hold and would suggest investors wait to see how things develop over the coming quarters.
Flight Centre Travel Group Ltd (ASX: FLT)
Citi has also labelled Flight Centre as a sell, though its analysts have lifted their price target to $45.50 following the release of its full-year guidance at its recent annual general meeting. The broker appears to believe that the travel agent's shares are fully valued now and lack any meaningful upside. Again, like Ardent Leisure, I wouldn't class Flight Centre as a sell. While I wouldn't be a buyer of its shares, I'd happily have it in my portfolio if I already owned it.
Santos Ltd (ASX: STO)
A note out of UBS reveals that its analysts have downgraded the energy company to a sell rating with a price target of $4.05. The broker appears to be disappointed with Santos' production guidance for 2018 and believes its shares have priced in a much higher oil price. While I agree that its guidance was softer than I expected, I am quite bullish on oil prices and believe there is a chance they could reach US$70 a barrel. If this proves to be the case then I think Santos' shares could continue to climb higher.
