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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Citi, its analysts have retained their sell rating and $11.70 price target on this iron ore producer's shares. The broker has concerns over the iron ore price and believes it is likely to come under pressure in the near future. This is because Citi is forecasting steel production to peak and iron ore demand to soften. It feels this could weigh on the Fortescue share price. The Fortescue share price ended the week at $14.18.
Orocobre Limited (ASX: ORE)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $1.80 price target on this lithium miner's shares. According to the note, Orocobre's latest update revealed lower than expected sales and volumes. Unfortunately, Macquarie doesn't expect things to improve quickly and suspects that high lithium carbonate inventory levels globally will continue to weigh on prices for some time to come. The Orocobre share price last traded at $2.37.
Shopping Centres Australasia Property Group Re Ltd (ASX: SCP)
Another note out of Citi reveals that its analysts have retained their sell rating and $1.87 price target on this shopping centre operator. The broker notes that Shopping Centres Australasia has reported a material shortfall in rent during the current quarter. And while rent collections are improving, the broker hasn't seen enough to make a change to its rating. It continues to believe its shares are overvalued at the current level. The company's shares ended the week at $2.27.
