On Monday I looked at three shares that had been given buy ratings by brokers this week.
Unfortunately, not all shares are in favour right now. Three that have been given sell ratings by leading brokers are listed below.
Here’s why they have been rated as sells:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of the Macquarie equities desk, its analysts have downgraded the regional bank’s shares to an underperform rating from neutral. The broker has also cut the price target on the bank’s shares to $10.75 from $11.00. Its analysts made the move on the back of concerns over weakening retail banking conditions due to competitive pressures, slowing credit growth, and higher funding costs. While I wouldn’t necessarily be a seller of its shares if I owned them, I wouldn’t be a buyer unless they pulled back a touch. I see more value in the big four banks at the moment.
Beach Energy Ltd (ASX: BPT)
A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on this energy producer’s shares to $1.62 following the release of its full-year results. While the broker sees positives in Beach Energy’s plans to grow its production beyond 30 MMboe by FY 2021, the capital expenditure was higher than it expected. Citi expects the energy producer’s shares to remain under a little pressure until its strategy day in September. Once again, I wouldn’t necessarily be a seller of its shares today. Especially given the outlook for oil prices and how it plans to significantly increase its production over the medium term.
Greencross Limited (ASX: GXL)
Analysts at Deutsche Bank have retained their sell rating and $3.70 price target on the integrated pet care company’s shares after the release of its full-year results yesterday. While the broker acknowledges that management is attempting to address the company’s poor underlying performance, it believes radical changes are needed in the near term. I would agree with Deutsche Bank on this one and think investors ought to stay clear of it despite how cheap its shares look.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Greencross Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.