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:
ASX Ltd (ASX: ASX)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $60.00 price target on this stock exchange operator’s shares. Although activity during the first quarter was a touch stronger than the broker expected, this hasn’t been enough for it to budge on its underperform rating. It continues to believe that its shares are fully valued given its current growth profile. The ASX share price ended the week materially higher than this price target at $80.44.
National Australia Bank Ltd (ASX: NAB)
Analysts at Morgan Stanley have downgraded this banking giant’s shares to an underweight rating and cut the price target on them to $25.60 following its customer-related remediation update. According to the note, the broker believes the company’s revenue outlook is deteriorating and that its shares don’t deserve to trade at a premium to the rest of the big four. NAB’s shares finished a tough week at $27.85, which implies potential downside of 8% over the next 12 months.
Netwealth Group Ltd (ASX: NWL)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $6.20 price target on this investment platform provider’s shares following the Reserve Bank’s rate cut last week. According to the note, Macquarie believes the majority of Netwealth’s accounts will now be generating negative returns on their cash holdings after admin fees. It appears concerned this could make its platform less attractive for investors. And for the same reason the broker is also bearish on Hub24 Ltd (ASX: HUB). The Netwealth share price last traded at $8.76.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Netwealth. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.