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:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating and lowly price target of $13.00 on this payments company’s shares. The broker has held firm with its rating despite news that Tencent Holdings has snapped up a 5% stake in the buy now pay later provider. While it acknowledges that this validates the Afterpay business model, it feels it is unlikely that Tencent will give Afterpay access to WeChat payments in the China market. In light of this, it sees no reason to change its rating at this point. The Afterpay share price ended the week at $39.88.
AGL Energy Limited (ASX: AGL)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this energy retailer’s shares to $15.88. According to the note, the broker expects AGL Energy to be hit with a double whammy of weak commodity prices and financial relief for customers. And while it has retained its guidance for FY 2020, the broker expects next year to be much more challenging. The AGL Energy share price last traded at $16.49.
SEEK Limited (ASX: SEK)
Analysts at Morgans have downgraded this job listings company’s shares to a reduce rating with a $15.55 price target. According to the note, the broker was surprised to see SEEK’s share price rally so hard over the last few weeks considering the tough trading conditions it is facing. It isn’t expecting a rebound in job advertisements to happen quickly and expects it to be a slower recovery than the market appears to believe. The SEEK share price ended the week at $17.41.
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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.