Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were 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:
Commonwealth Bank of Australia (ASX: CBA)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this banking giant's shares down to $57.00. According to the note, the broker has reduced its earnings estimates for Commonwealth Bank and the other big four banks to account for the Reserve Bank cuts, coronavirus support initiatives, and recent loan repricing. The Commonwealth Bank share price ended the week at $57.66.
ResMed Inc. (ASX: RMD)
Another note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $17.00 price target on this medical device company's shares. According to the note, the broker suspects that the coronavirus outbreak could impact the number of people being referred for sleep studies and ultimately demand for its sleep treatment products. Though, it does see potential upside from increasing demand for ventilators globally because of the outbreak. ResMed's shares were changing hands for $22.57 at the close of play on Friday.
Xero Limited (ASX: XRO)
According to a note out of UBS, its analysts have retained their sell rating and cut the price target on this cloud-based business and accounting software provider's shares to $58.50. The broker suspects that the company's subscriber growth could be impacted by the coronavirus outbreak. The broker appears concerned by this, given the significant future growth which has been priced into its shares. The Xero share price ended the week at $65.20.
