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 $30.00 price target on this payments company's shares. This follows the release of its trading update for the month of November. While UBS acknowledges that Afterpay had an impressive month in the United States and surpassed $1 billion in monthly underlying sales for the first time, it has concerns about management's selective disclosures. It notes that there was no October sales update, nor was there any real customer or bad debt data for November. The Afterpay share price ended the week at $94.50.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Credit Suisse have retained their underperform rating and $58.71 price target on this pizza chain operator's shares. This follows its investor day update last week. While the company is performing well and its medium term outlook is positive, it isn't enough for a change of rating. Credit Suisse continues to believe that Domino's shares are expensive at the current level. Its shares were changing hands for $82.18 on Friday.
Wesfarmers Ltd (ASX: WES)
A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this conglomerate's shares to $44.00. Citi notes that Wesfarmers has benefited greatly from COVID-related tailwinds this year and looks set to benefit from the housing cycle over the coming years. However, the broker sees far more value in some of its retail peers and has therefore retained it sell rating. The Wesfarmers share price ended the week at $49.44.
