With earnings season out of the way now, brokers have been busy evaluating the prospects of countless shares listed on the local share market.
Three which have not fared well are listed below. Here's why they have been given sell ratings:
Adelaide Brighton Ltd. (ASX: ABC)
According to a note out of Citi, its analysts have retained their sell rating but raised the price target on the building materials company's shares slightly to $5.20. Although earlier this week Adelaide Brighton delivered record full-year revenues and declared a special dividend, Citi appears underwhelmed by its weak FY 2018 guidance and margin declines during the year. Whilst I'm not a buyer of its shares myself, I would be surprised if they fell to Citi's price target. After all, Deutsche Bank is currently in the market on behalf of Barro to buy 19 million Adelaide Brighton shares at $6.75 per share.
Harvey Norman Holdings Limited (ASX: HVN)
Another note out of Citi reveals that its analysts have retained their sell rating and $3.50 price target on this retailer's shares. Both Harvey Norman's half-year result and interim dividend were below the broker's expectations. Furthermore, while its international businesses continue to perform well, Citi believes the local market is becoming increasingly competitive. I would agree with Citi on this one and think investors ought to stay clear of Harvey Norman's shares.
QBE Insurance Group Ltd (ASX: QBE)
Analysts at Deutsche Bank have retained their sell rating and $10.00 price target on the insurance giant's shares. According to the note, the broker is optimistic that the company's simplification program will be a big positive for its performance and put it in a more sustainable position, but it isn't ready to make any changes to its recommendation just yet. I'm not a fan of QBE and would suggest investors follow the advice of Deutsche's analysts.
