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:
AGL Energy Limited (ASX: AGL)
According to a note out of UBS, its analysts have retained their sell rating and $10.10 price target on this energy company's shares. The broker notes that AGL plans to separate into two companies – New AGL and PrimeCo. While UBS believes New AGL will be a more ESG-friendly option for investors, it struggles to see the appeal of PrimeCo. This is due to the latter's thermal coal assets. UBS also notes that the full details of the plan have yet to be released. The AGL share price ended the week at $9.72.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
Analysts at Morgan Stanley have retained their underweight rating and $9.90 price target on this regional bank's shares. According to the note, the broker believes the banking sector's near term outlook is positive due to heightened liquidity, favourable shifts in deposits, and low wholesale funding costs. However, it doesn't see enough value in Bendigo and Adelaide Bank's shares to have a more positive rating. Especially given its concerns over ongoing margin management and costs. The Bendigo and Adelaide Bank share price was trading at $9.97 at the end of the week.
JB Hi-Fi Limited (ASX: JBH)
Another note out of Morgan Stanley reveals that its analysts have downgraded this retailer's shares to an underweight rating with a reduced price target of $46.00. According to the note, Morgan Stanley made the move largely on valuation grounds and sees far more value in rival Harvey Norman Holdings Limited (ASX: HVN). Furthermore, the broker notes that JB Hi-Fi is now cycling the panic buying period at the height of the pandemic. This could make achieving comparable store sales growth hard in the coming months. The JB Hi-Fi share price ended the week at $51.01.
