Earlier in the week I had a look at a number of shares which have been labelled as buys by leading brokers.
Today I thought I would take a look at three shares which have unfortunately been labelled as sells. Here they are:
Vocus Group Ltd (ASX: VOC)
According to a note out of the Macquarie equities desk, its analysts have downgraded the telco company to an underperform rating with a $3.05 price target. The broker appears to be concerned by the intense competition in the industry and its current valuation following a strong run higher since September. While I wouldn't necessarily be in a rush to sell, I wouldn't be a buyer of Vocus shares right now either. If they were close to $2.50 I would be interested.
Whitehaven Coal Ltd (ASX: WHC)
A note out of Citi reveals that its analysts have downgraded the coal miner to a sell rating from neutral and placed a $4.20 price target on its shares. Citi made the move after Whitehaven Coal fell short of the broker's December quarter production estimates yesterday. The coal miner also downgraded its full-year production guidance from the range of 22Mt to 23Mt to a new range of 20.5Mt to 21.0Mt due to issues at its key Narrabri operation. Its shares have fallen since the release and do look a little more attractive now, but I wouldn't be a buyer unless coal prices increased strongly over the coming months.
Woodside Petroleum Limited (ASX: WPL)
Analysts at Citi have also given this energy producer a sell rating following the release of its latest production update. The broker has, however, lifted it price target slightly on Woodside's shares to $26.86. Although the company beat the broker's estimates, it hasn't been enough to warrant a change in recommendation. Citi is of the opinion that the current share price incorporates bullish oil prices of close to US$80 per barrel. I would have to agree with Citi on this one as well and would rather gain exposure to the energy sector through an investment in BHP Billiton Limited (ASX: BHP).
