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 sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:
AGL Energy Limited (ASX: AGL)
According to a note out of Citi, its analysts have retained their sell rating and trimmed the price target on this energy company's shares down to $16.28. The broker remains bearish on AGL Energy because of concerns over a potential deterioration in its earnings. It believes operational headwinds make its outlook challenging and expect them to put pressure on its dividend over the coming years. Despite this note the AGL Energy share price pushed higher last week and ended it at $19.13. Citi's price target implies potential downside of ~15%.
Platinum Asset Management Ltd (ASX: PTM)
Analysts at Goldman Sachs have reiterated their sell rating and $4.10 price target on this fund manager's shares. According to the note, Platinum's funds under management are notably lower than the broker's forecasts for FY 2020. And whilst it believes that its valuation is now more accommodating, it feels risks to earnings remain skewed to the downside. The Platinum share price finished the week at $4.11.
Synlait Milk Ltd (ASX: SM1)
Analysts Credit Suisse have retained their underperform rating but lifted the price target on this dairy processor's shares to NZ$8.50 (A$7.88). According to the note, although it was pleased with the strong growth in infant formula volumes in FY 2019, it was a touch disappointed with Synlait Milk's overall full year result and expects its margins to soften over the medium term. Its shares fell heavily last week but are still trading higher than Credit Suisse's price target at A$8.40. This implies potential downside of over 6%.
