With most brokers taking a well-earned break over the holiday period, research notes are few and far between right now.
In light of this, I thought I would take a look at a few that have been released over the last few weeks that remain very relevant today.
Three sell ratings that you might want to pay attention to are listed below:
Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $68.50 price target on this banking giant’s shares. The broker notes that Commonwealth Bank has been given Chinese regulatory approval to sell its stake in BoCommLife to MS&AD Insurance Group. Although it acknowledges that this sale will give its CET1 ratio a boost, it doesn’t expect it to support a share buyback anytime soon. In light of this and its current valuation, the broker is holding firm with its underweight rating. The CBA share price is trading at $83.22 on Wednesday.
Estia Health Ltd (ASX: EHE)
Another note out of Morgan Stanley reveals that its analysts have downgraded this aged care operator’s shares to an underweight rating and cut the price target on them to $1.50. According to the note, the broker made the move after reducing its earnings estimates for Estia Health. Its analysts believe that the company’s earnings will be under pressure until the Royal Commission into the aged care sector is finalised. The Estia Health share price is trading at $1.83 today.
Qantas Airways Limited (ASX: QAN)
Analysts at Credit Suisse have retained their underperform rating and $3.00 price target on this airline operator’s shares. According to the note, the broker has concerns over the company’s prospects in the domestic market due to rising competition. It believes that Virgin Australia will be a strong competitor and notes the impending entry of Regional Express Holdings Ltd (ASX: REX) into the market. The Qantas share price is trading at $4.92 on Wednesday afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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