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:
Blackmores Limited (ASX: BKL)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted their price target on this health supplements company's shares to $64.00. While Blackmores is likely to have experienced strong demand for some of its vitamins because of the pandemic, it expects the impact on profits to be minimal. As a result, it believes the market is expecting too much from the company based on its current share price. The Blackmores share price ended the week at $71.14.
Goodman Group (ASX: GMG)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut the price target on this property company's shares down to $11.02. Goldman Sachs is concerned that minor cap rate shifts have the potential to drive material earnings changes due to its high leverage. In light of this and current global macro conditions, it has downgraded its earnings estimates for the next three years. This means Goldman's earnings estimates are around 10% lower than the consensus. The Goodman Group share price ended the week at $12.95.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Morgan Stanley have retained their underweight rating and lifted the price target on this private hospital operator's shares to $55.00. The broker notes that the government is now allowing a portion of deferred surgeries to recommence. However, how long a ramp up to full capacity will take, is unknown at present. Morgan Stanley estimates that it could be FY 2022 by the time Ramsay's operations return to pre-pandemic levels, especially given the prospect of higher unemployment. Ramsay's shares were changing hands for $61.94 at the close of play on Friday.
