It certainly has been a busy month full of annual general meetings and trading updates. This has ultimately led to countless broker upgrades and downgrades.
Three shares which have not fared so well are listed below. Here's why brokers think they are sells:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on the bank's shares to $71.00. The broker appears to believe that its shares could still de-rate further as its growth and returns moderate. While I wouldn't be in a rush to sell the bank's shares, I'm not a buyer at the current share price. Especially with the uncertainty caused by the royal commission.
SEEK Limited (ASX: SEK)
A note out of UBS rates the job listings company as a sell with a $16.00 price target following the release of its FY 2018 profit guidance. Although the broker expects Seek to hit the high-end of its guidance range, the broker has retained its sell rating on valuation grounds. Like CommBank, I don't think SEEK is a sell. However, I wouldn't be a buyer of its shares unless they dropped back a touch. But if you already hold, then I would suggest holding tight for the long-term and ignoring any short-term volatility.
Village Roadshow Ltd (ASX: VRL)
According to a note out of the equities desk of Macquarie, its analysts have downgraded the entertainment company to an underperform rating and cut the price target on its shares to a lowly $3.50. Its analysts have made the move after its recent trading update underwhelmed and believes there are few short-term catalysts to take its shares higher. I would agree with Macquarie on Village Roadshow. I felt its recent update was a big disappointment and investors would be better looking elsewhere in the industry.
