Most of Australia's leading brokers are taking well-deserved breaks over the holiday period.
As a result, it remains quiet on the broker note front again this week.
In order to fill the void, I've picked out three sell ratings that caught my eye this month. Here's why brokers have named them as sells:
Afterpay Touch Group Ltd (ASX: APT)
Analysts at UBS have retained their sell rating and $17.60 price target on this payments company's shares. According to the note, the broker appears concerned by the buy now pay later platform provider's impairment charges relative to its average gross loans. UBS notes that rapid loan growth can sometimes mask credit issues. It believes things could get worse as it expands into lower socio-economic demographics. The Afterpay share price is notably higher than this price target at $30.11.
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Goldman Sachs, its analysts retained their sell rating and $76.10 price target on this banking giant's shares following the RBNZ Capital Review. Although Goldman believes CBA is best placed and can fund the increase in its NZ subsidiary capital requirements via contributed equity from the group, it remains bearish on the bank. The broker continues to believe that CBA will be more adversely impacted by lower rates and non-interest income pressures. As a result, it struggles to justify the material premium that its shares are trading at compared to its peers. The CBA share price last traded at $81.10.
Woolworths Group Ltd (ASX: WOW)
A note out of Credit Suisse reveals that its analysts have retained their sell rating but lifted the price target on this retail conglomerate's shares to $35.63. According to the note, the broker has been looking over its planned demerger of the Endeavour Drinks business. Although Credit Suisse believes the demerger will create value, it is still not enough for a change in rating. The Woolworths share price was changing hands at $37.44 on Monday.
