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:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Citi, its analysts have retained their sell rating but lifted the price target on this beverage company's shares to $9.70 following the release of its half year results. Whilst there were positives in the first and Citi has upgraded its estimates to reflect this, it continues to believe that increasing costs will weigh on its margins. In light of this and its inconsistency over the last few years, it feels that its shares are fully valued at the current level. The Coca-Cola Amatil share price ended the week at $10.78.
Coles Group Ltd (ASX: COL)
Analysts at UBS have retained their sell rating and lifted the price target on this supermarket giant's shares to $12.65 following the release of its full year results. According to the note, although the company's result was in line with expectations and the performance of its Supermarket segment was solid, it hasn't been enough for UBS to budge on its recommendation just yet. At the current level it doesn't see enough value on offer to take off its sell rating. Coles shares finished the week at $13.84.
Medibank Private Ltd (ASX: MPL)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and lifted the price target on this private health insurer's shares slightly to $2.81. According to the note, Medibank fell a touch short of Goldman's profit estimates in FY 2019. Medibank achieved a net profit after tax of $458.7 million, whereas Goldman had been expecting $463.9 million over the 12 months. Looking ahead, its analysts don't appear confident on its outlook due to gross margin pressures. As a result of this and its current valuation, they have retained their sell rating. Medibank's shares ended the week at $3.44.
