On Thursday I had a look at a few shares which had been given buy ratings this week by some of Australia's top brokers.
Today I thought I would look at the other side of the coin, at the shares that brokers think you should sell. Here are three which caught my eye:
Altura Mining Ltd (ASX: AJM)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and 25 cents price target on the shares of this lithium miner. Although it acknowledges that earnings are irrelevant at this stage due to the company focusing purely on the development of its Altura lithium project, the company's first-half loss was greater than it expected. While I wouldn't necessarily class it as a sell, I wouldn't be a buyer of its shares until it is producing and selling its lithium.
Domino's Pizza Enterprises Ltd. (ASX: DMP)
A note out of Citi reveals that its analysts have retained their sell rating and $43.60 price target on the pizza chain operator's shares. The broker has, however, noted that the potential closure of a significant number of Retail Food Group Limited (ASX: RFG) franchises could be a positive for Domino's. It isn't enough for the broker to change its recommendation, though. I agree with Citi on the closures being a positive, but I don't agree with its rating. While I don't necessarily believe the Domino's share price is going to go gangbusters any time soon, I think now could be an opportune time to load up for a long-term investment.
Medibank Private Ltd (ASX: MPL)
Analysts at Goldman Sachs have retained their sell rating and $2.70 price target on the private health insurer's shares. According to the note, the broker is quite bearish on the industry due to its concerns over tough gross margin trends and building political activity. Goldman noted recent comments from the opposition party in relation to health insurance industry excess profits and talk around capping premium rate rises to 2%. I agree with Goldman on this one and would suggest investors stay clear of the industry for the time being.
