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:
Cochlear Limited (ASX: COH)
A note out of UBS reveals that it has retained its sell rating and $195.00 price target on this hearing solutions company's shares. According to the note, UBS feels current trends are unfavourable and doubts that Cochlear will be able to live up to the market's expectations over the medium term. The broker also points out that any benefit from the recent product recall by Advanced Bionics looks set to be limited due to the deferral of surgeries because of the coronavirus outbreak. Cochlear's share price finished the week at $205.00.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Goldman Sachs have retained their sell rating and $53.29 price target on this fund manager's shares. According to the note, the broker was a little disappointed with Magellan's performance in February. It notes that Magellan's High Conviction strategy underperformed by -4.6% during the month. And while its Global fund outperformed, it was expecting a stronger month given its emphasis on downside protection. In light of this, it appears to see no reason to change its rating at this point. Though, it is worth noting that its shares fell heavily on Friday and now trade below Goldman's price target at $52.90.
Reece Ltd (ASX: REH)
According to a note out of Citi, its analysts have retained their sell rating and $10.50 price target on this plumbing parts company's shares. This follows the release of its half year result last month, which was largely in line with the broker's expectations. However, Citi notes that this was due to a solid performance in the United States, which offset weakness in Australia. Unfortunately, it doesn't expect things to improve in the local market in the near term and fears this could lead to Reece falling short of expectations in the second half. The Reece share price finished the week at $11.30.
