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:
National Storage REIT (ASX: NSR)
According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted the price target on this self-storage operator’s shares to $1.57. Goldman made the move following the release of the company’s trading update and guidance for FY 2021. Although there were aspects of the update that pleased the broker, it notes that there wasn’t enough detail to allow it to change its overall view. Particularly given its current valuation, which Goldman Sachs appears to believe is excessive compared to its peers. It points out that its shares are trading at a 23x estimated FY 2022 FFO. This compares to a sector average of ~17x. The National Storage share price is trading at $1.91 today.
OZ Minerals Limited (ASX: OZL)
Another note out of Goldman Sachs reveals that its analysts have retained their sell rating and lifted the price target on this copper producer’s shares to $16.70. According to the note, Goldman believes OZ Minerals’ shares are overvalued at the current level. It notes that they are trading at 1.2x net asset value, compared to the sector average of 1x net asset value. It believes this is due to the market valuing its Carrapateena mine in line with the larger and higher quality Olympic Dam mine owned by BHP Group Ltd (ASX: BHP). The OZ Minerals share price is changing hands for $19.77 this afternoon.
Virtus Health Ltd (ASX: VRT)
Analysts at Morgan Stanley have downgraded this fertility treatment company’s shares to an underweight rating but increased the price target on them to $4.90. Morgan Stanley made the move after a very strong gain in recent months left its shares looking overvalued. In addition to this, the broker has concerns about the impact that a long term shift to lower-value IVF services will have on its earnings. The Virtus Health share price is trading at $5.54 today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Virtus Health Limited. 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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