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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Adbri Ltd (ASX: ABC)
According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted their price target on this building products company's shares to $2.10. This follows the release of its quarterly update. While the broker notes that demand has been improving in certain markets, subdued conditions in other areas continue to weigh on its performance. In light of this, it feels its shares are overvalued at the current level. The Adbri share price ended the week at $3.09.
Galaxy Resources Limited (ASX: GXY)
Analysts at Morgan Stanley have retained their underweight rating and $1.25 price target on this lithium miner's shares. According to the note, the broker believes that the lithium market will remain tough for the foreseeable future due to high inventory levels. In addition to this, it notes that Galaxy's shipments, grades, and recoveries are lower than expected. As a result, the broker doesn't appear to be in a rush to change its rating. The Galaxy share price last traded at $1.27.
Zip Co Ltd (ASX: Z1P)
A note out of UBS reveals that its analysts have retained their sell rating and $5.50 price target on this buy now pay later provider's shares. This follows the release of its first quarter update last week. Although Zip's customer growth was stronger than UBS expected, its repeat transactions were lower than forecast. In addition, the broker doesn't appear to believe the current share price factors in the execution risks it faces. The Zip share price ended the week at $7.02.
