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:
Coles Group Ltd (ASX: COL)
According to a note out of Morgan Stanley, its analysts have downgraded this supermarket operator's shares to an underweight rating with an improved price target of $13.50. Although its analysts note that supermarket industry margins are returning to normal, it doesn't believe this is enough to justify its current share price. The Coles share price ended the week notably higher than this price target at $15.92.
Domain Holdings Australia Ltd (ASX: DHG)
Analysts at UBS have downgraded this property listings company's shares to a sell rating with an improved price target of $3.50. According to the note, UBS believes that new property listings will return to growth in the second half following the housing market rebound. However, this isn't enough to justify the premium its shares are currently trading at. As a result, UBS has downgraded Domain's shares to a sell rating on valuation grounds. The Domain share price finished the week at $3.89.
Platinum Asset Management Ltd (ASX: PTM)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this asset manager's shares to an underperform rating with an improved price target of $4.30. According to the note, the broker made the move on valuation grounds. Although it notes that its fund outflows are moderating, they are still reasonably high. It also points out that there hasn't been a material improvement in its investment performance to encourage meaningful fund inflows in the near term. Platinum's shares last traded at $4.77.
