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:
Independence Group NL (ASX: IGO)
According to a note out of Citi, its analysts have downgraded this nickel producer's shares to a sell rating with a $5.00 price target following the release of its full year results. Although Independence Group delivered a result in line with expectations, the broker has downgraded its shares on valuation grounds after a strong gain in 2019. The company's shares are up 50% since the start of the year and closed the week at $5.44. Citi's price target implies potential downside of 8% over the next 12 months.
Ramsay Health Care Limited (ASX: RHC)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $57.00 price target on this private hospital operator's shares. According to the note, the broker is a fan of Ramsay, but not its valuation. It expects the company to continue to outperform its peers due to superior scale, positioning and portfolio, but this isn't enough to justify the premium its shares trade at. Especially given how challenging it will be for the company to maintain its ROIC profile going forward. Ramsay's shares ended the week at $65.64, which means Goldman's price target implies potential downside of over 13%.
Woolworths Group Ltd (ASX: WOW)
Analysts at Credit Suisse have retained their underperform rating but raised the price target on this retail giant's shares to $31.68 following its full year results. According to the note, although the broker believes its Australian Food business will continue its strong form, it feels that its shares are expensive in comparison to its peers. Especially given the lack of operating leverage in FY 2019 and cost headwinds. On Friday the Woolworths share price closed the week at $37.77. This means Credit Suisse's price target implies potential down side of 16%.
