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:
Ainsworth Game Technology Limited (ASX: AGI)
According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this gaming technology company’s shares slightly to 35 cents. While UBS notes that its performance is improving, it suspects that its recovery could be prolonged. Particularly in the Latin American market, which has been hit hard by casino closures and operating restrictions. The Ainsworth Game Technology share price ended the week at 74 cents.
Air New Zealand Limited (ASX: AIZ)
A note out of Macquarie reveals that its analysts have retained their underperform rating and NZ$1.20 (A$1.11) price target on this airline operator’s shares. This follows news of a travel bubble between Australia and New Zealand opening up this month. While the broker expects there to be pent-up demand for people wanting to visit friends and family, it isn’t sure that business and leisure travellers will be as interested. This is due to the potential of being stranded should borders suddenly snap shut because of an outbreak. The Air New Zealand share price ended the week at A$1.70.
ASX Ltd (ASX: ASX)
Analysts at Goldman Sachs have retained their sell rating and $67.46 price target on this stock exchange operator’s shares. This follows the release of its activity data for the month of March. Goldman notes that futures trading continues to slide while cash market trading normalises. Overall, the broker continues to see earnings risks skewed slightly to the downside. As a result, it believes its shares are overvalued at the current level. The ASX share price was trading at $72.78 on Friday.