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:
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IGO Ltd (ASX: IGO)
According to a note out of Ord Minnett, its analysts have retained their sell rating and cut the price target on this nickel producer's shares to $3.50. The broker isn't a fan of IGO due largely to its belief that its assets are declining in quality. It also notes that the company's outlook over the coming years is rather subdued. The IGO share price ended the week at $4.57.
Spark New Zealand Ltd (ASX: SPK)
Analysts at Goldman Sachs have retained their sell rating and $4.00 price target on this telco's shares. Based on its outlook and current share price, Goldman believes that Spark is one of the most expensive incumbent telecommunication companies globally. In light of this, it sees no reason to buy its shares ahead of other more attractively priced peers. The Spark share price closed the week at $4.25.
Xero Limited (ASX: XRO)
A note out of UBS reveals that its analysts have retained their sell rating but lifted their price target on this business and accounting software platform provider's shares to $72.00. According to the note, UBS believes there's a lot to like about Xero. It notes that a recent survey shows that Xero is highly regarded by accountants and cloud accounting penetration growth remains solid. However, due to its valuation and concerns over higher than normal business closures because of the pandemic, the broker retains its sell rating. The Xero share price ended the week notably higher than this price target at $92.12.
