On Wednesday I looked at three shares that have found favour with top brokers and been given the coveted buy rating this week.
Not all shares are in favour with brokers, though. Three shares that have been given the unwanted sell rating this week are listed below.
Here’s why brokers are bearish on these shares:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgan Stanley, it has retained its underweight rating and $9.50 price target on this regional bank’s shares. The broker has held firm with its rating despite Bank of Queensland announcing plans to reprice many of its mortgages by upwards of 18 basis points this week. Although Morgan Stanley expects this to boost its net interest margin, it appears concerned that the bank faces headwinds that could offset these gains. Bank of Queensland’s shares last closed at $10.18.
HUB24 Ltd (ASX: HUB)
Analysts at Macquarie have initiated coverage on this investment and superannuation platform provider’s shares with an underperform rating and $10.00 price target following its recent update. According to the note, the broker believes that companies like HUB24 are likely to take market share away from the banks, but it suspects that margin pressure isn’t far away. Macquarie has suggested that with little difference between the platforms on offer, margin pressure could intensify as platform providers fight for customers. The HUB24 share price is currently trading at $12.93.
Platinum Asset Management Limited (ASX: PTM)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $4.65 price target following the release of the asset manager’s latest update. The broker wasn’t overly surprised by its poor performance during December and continues to believe that its shares shouldn’t be trading at a premium to its peers. Especially if the underperformance of its funds acts as a headwind for domestic fund flows. Goldman prefers Magellan Financial Group Ltd (ASX: MFG) and has a buy rating and $29.50 price target on its shares.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Platinum Investment Management 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.