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:
AGL Energy Limited (ASX: AGL)
According to a note out of the Macquarie equities desk, its analysts have downgraded this energy company's shares to an underperform rating with a $15.91 price target. The broker made the move largely on concerns over weak power prices. In addition to this, it notes that a major contract is close to expiring with Alcoa. It fears that the renewal could be done on less than favourable terms given current market conditions. The AGL Energy share price ended the week at $16.89.
Cochlear Limited (ASX: COH)
Analysts at UBS have retained their sell rating and $160.50 price target on this hearing solutions company's shares. Although Cochlear has just received approval for four new products in the United States and expects this to cement its leadership position in the cochlear implant market, it isn't enough for a change of rating. According to the note, the broker continues to believe that the market is expecting too much from the company in the near term. As a result, it feels that its shares are overvalued at the current level. The Cochlear share price last traded at $190.47.
Netwealth Group Ltd (ASX: NWL)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this investment platform provider's shares slightly to $8.45. Although it was pleased with its fourth quarter update, it remains concerned about its prospects in FY 2021. The broker notes that a number of factors look likely to put pressure on its revenue margins next year. This could see Netwealth fall short of expectations. The Netwealth share price ended the week at $10.70.
