Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite bearish.
Three sells ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts have held firm with their sell rating and $74.95 price target on this banking giant's shares after it announced that its Colonial First State divestment was expected to complete early next month. Although the broker sees this as a positive and believes it could lead to a special dividend being declared, it has retained its sell rating due to concerns over CBA's heightened exposure to lower rates and its elevated valuation. The banking giant's shares ended the week at $82.59.
IOOF Holdings Limited (ASX: IFL)
A note out of Citi reveals that its analysts have retained their sell rating and $4.80 price target on this struggling financial services company's shares following its quarterly update. According to the note, IOOF's update fell a little short of its expectations. In addition this, the broker has concerns about potential challenges that lay ahead such as remediation charges and the restructuring of its financial advice business. The IOOF share price last traded at $5.86.
JB Hi-Fi Limited (ASX: JBH)
Analysts at UBS have downgraded this retailer's shares to a sell rating with an improved price target of $26.85. According to the note, the broker is pleased with the way the company is performing but has concerns over increasing costs and competition. Its analysts also pointed out that the company's operating leverage is low compared to many other retailers. The JB Hi-FI share price closed the week at $30.35.
