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:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $8.40 price target on this regional bank's shares. The broker believes that challenging trading conditions for its retail business, particularly from weak mortgage loan growth, will weigh on its margins. In light of this, it suspects that another dividend cut may be necessary in the near term. The Bank of Queensland share price finished the week at $9.72.
Northern Star Resources Ltd (ASX: NST)
Analysts at Morgan Stanley have retained their underweight rating and $8.60 price target on this gold miner's shares after it announced the expansion of its Pogo operations. According to the note, it believes the majority of this expansion has been factored into estimates and thus does not have any real impact on its valuation. In light of this, the broker continues to rate its shares as underweight on valuation grounds. The gold miner's shares are currently changing hands at $11.28.
Telstra Corporation Ltd (ASX: TLS)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.20 price target on this gold miner's shares. According to the note, the broker believes that the proposed TPG Telecom Ltd (ASX: TPM)-Vodafone merger could weigh heavily on Telstra's shares if it is given the green light. This is because it expects a stronger third telco company to ultimately lead to an increase in competition and limit Telstra's mobile growth. However, it acknowledges that Telstra's shares could charge higher if the merger is blocked next month. Telstra's shares ended the week at $3.65.
