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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have resumed coverage on this infant formula company's shares with an underperform rating and $7.15 price target. The broker has suggested that China's declining birth rate could result in the infant formula market contracting in the coming years. In fact, it estimates that the number of babies of infant formula age could reduce by almost a third in 2025 compared to 2018's numbers. The a2 Milk share price ended the week at $7.38.
Blackmores Limited (ASX: BKL)
Analysts at Citi have retained their sell rating and $59.20 price target on this health supplements company's shares. According to the note, the broker has been undertaking research in China and found that consumers now have a preference for domestic brands. It fears this could weigh on its performance in the key market. In addition, Citi has concerns over increasing competition in the Australian market. The Blackmores share price was fetching $75.50 at the close of play on Friday.
Commonwealth Bank of Australia (ASX: CBA)
A note out of Morgans reveals that its analysts have retained their reduce rating but lifted their price target on this banking giant's shares to $72.00. According to the note, the broker is expecting some solid updates by the banks in the coming weeks. In fact, it feels they may surprise to the upside when they report. However, while it has lifted its earnings estimates for Australia's largest bank, it still believes its shares are expensive at the current level. The Commonwealth Bank share price ended the week at a 52-week high of $89.39.
