It certainly has been a busy month for brokers. With countless annual general meetings and results being announced, analysts have been adjusting their discounted cash flow models and recommendations accordingly.
Three shares which haven't fared well and have been given sell ratings are listed below. They are as follows:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Morgan Stanley, the broker has retained its underperform rating and $8.00 price target on the beverage company's shares following its annual general meeting yesterday. At the meeting its management advised that its EBITDA could be up to $40 million lower in FY 2018 as it invests in order to tackle the decline in volumes it is facing. I would class Coca-Cola Amatil as a hold now. If these investments pay off then it could give its future earnings growth a real boost.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of Citi reveals that it has retained its sell rating and lowered its price target on the travel agent's shares to $45.00. According to the note, the broker is concerned that an oversupply from increased airline capacity could be a drag on its Australian business in the second-half. I would have to agree with Citi on the travel agent. Whilst I think that Flight Centre is a quality company, at 20x trailing earnings I think its shares are looking a touch expensive now.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
Analysts at UBS have retained their sell rating, but raised the price target on the healthcare company's shares to NZ$11.55 ($10.42). While the first-half result was in line with expectations, the broker believes its valuation is becoming stretched. I agree with UBS on this one. At 35x trailing earnings I think Fisher & Paykel Healthcare is expensive given its full-year earnings growth guidance of between 9% and 12.5%.
