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:
Netwealth Group Ltd (ASX: NWL)
According to a note out of UBS, its analysts have downgraded this investment platform provider’s shares to a sell rating with a $7.50 price target following its first quarter update. Although the broker believes it is possible for the company to achieve strong earnings growth this year, it has concerns over margin risk and its current valuation. Especially with the broker forecasting a cash rate of 0.25% by mid-2020. It believes this will impact its earnings due to a reduced cash spread margins. The Netwealth share price last traded at $8.69.
Platinum Asset Management Ltd (ASX: PTM)
Analysts at Goldman Sachs have retained their sell rating and trimmed the price target on this fund manager’s shares to $3.80 following its first quarter update. According to the note, the broker has downgraded its earnings estimates for the next three years due to concerns over further fund outflows because of its poor investment performance. And although its shares are trading close to its price target, it remains sell-rated as it does not see any immediate positive catalysts. The Platinum share price ended the week at $3.98.
St Barbara Ltd (ASX: SBM)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $2.76 price target on this gold miner’s shares following its quarterly update. According to the note, the broker was pleased with the performance of the recently acquired Atlantic Gold business, but was left underwhelmed by the performance of its Gwalia and Simberi operations. In light of this, it sees no reason to change its rating. The St Barbara share price last traded at $2.72.
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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 has no position in any of the stocks mentioned. 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.