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:
Ainsworth Game Technology Limited (ASX: AGI)
According to a note out of UBS, its analysts have retained their sell rating and cut the price target on its shares to 46 cents. The broker was expecting the gaming technology company to record a profit in the first half, so was disappointed that it has guided to a loss of $4 million during the half. And while things look likely to improve in the second half, the broker remains bearish on the investment opportunity here. The Ainsworth Game Technology share price ended the week at 69 cents.
AMP Limited (ASX: AMP)
Another note out of UBS reveals that its analysts have downgraded this financial services company's shares to a sell rating with a $1.80 price target. According to the note, the broker made the move partly on valuation grounds after AMP's shares pushed notably higher than its price target. In addition to this, the broker has concerns over its platform margins and notes that there are execution risks around its strategy. AMP's shares were changing hands at $1.96 at the end of last week.
City Chic Collective Ltd (ASX: CCX)
Analysts at Citi have retained their sell rating and $2.30 price target on this retailer's shares. According to the note, Citi believes City Chic will record strong sales during the all-important period of Black Friday through to Christmas and New Year. It also believes its growth outlook is positive. However, it appears to believe that its shares are overvalued at around 21x estimated full year earnings. In light of this, it retains its sell rating. The City Chic share price last traded at $2.73.
