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:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Citi, its analysts have retained their sell rating and $9.70 price target on this beverage company’s shares. The broker believes there is a risk to the company’s earnings in FY 2021 due to the possible introduction of a container deposit scheme in the Victorian market. This scheme had a negative impact on volumes in NSW and Queensland when it was introduced in those markets. The Coca-Cola Amatil share price closed the week at $11.10.
National Australia Bank Ltd (ASX: NAB)
Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this banking giant’s shares to $24.00. According to the note, the broker suspects that NAB will be forced to raise considerable capital (~$3.5 billion) in the near future to fund transformation plans, strengthen its balance sheet, and cover potential penalties from legal or regulatory action. This could force the bank to cut its dividend further. The NAB share price was last trading at $25.15.
NIB Holdings Limited (ASX: NHF)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $5.75 price target on this private health insurer’s shares. According to the note, Credit Suisse believes that nib’s 2.9% increase in premiums in 2020 is a positive. This is because it suggests that it is not suffering from heightened claims inflation that some of its rivals are experiencing. And with the increase being in line with the industry average, it feels it should support policyholder growth. However, with earnings expected to be flat in FY 2020, the broker continues to believe its shares are expensive at the current level. The nib share price ended the week at $6.70.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. The Motley Fool Australia has recommended NIB Holdings 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.