On Wednesday I listed three shares that top brokers have picked out as buys this week.
Not all shares have been so lucky, though. The three shares listed below have been given the unwanted sell rating this week. Here's why:
ALS Ltd (ASX: ALQ)
According to a note out of Deutsche Bank, it has retained its sell rating and $6.85 price target on this testing solutions company's shares following the release of its half year results earlier this week. ALS delivered a 15.2% increase in half year revenue to $826.1 million and a 29.8% lift in first half underlying net profit after tax to $93.3 million. Although this result was ahead of the broker's expectations, it has held firm with its sell rating on the belief that its slowing growth means its shares don't deserve to trade on such high multiples.
National Storage REIT (ASX: NSR)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $1.29 price target on the units of this self-storage giant. According to the note, the broker is concerned that National Storage may not be able to acquire new centres on as favourable terms as previous years. The trust recently raised $175 million to fund its growth through acquisition strategy. Macquarie believes the most favourable assets have already been acquired and new deals may be made on lower than normal yields.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Citi have retained their sell rating and $14.50 price target on this wine company's shares. According to the note, the broker believes that the market may be too optimistic on just how quickly its Americas business can improve its earnings. Especially given how its research is pointing to declines in the sales of its large volume brands including Beringer, BV Coastal and Lindemans in the Americas market. The broker does, however, see potential upside from a US Supreme Court case and a U.S. acquisition. But this is not enough to warrant a change in recommendation just yet.
