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:
Bubs Australia Ltd (ASX: BUB)
According to a note out of Citi, its analysts have retained their sell rating and 35 cents price target on this infant formula company’s shares. While the broker felt there were a few improvements in its third quarter update, it isn’t enough to become more positive. Not until there is clear evidence that its Daigou 2.0 strategy is delivering results. Outside this, the broker still has concerns over growing competition by domestic players in the key China market and its ability to compete with bigger players. The Bubs share price was trading at a multi-year low of 37.5 cents at the end of the week.
OceanaGold Corp (ASX: OGC)
Analysts at Macquarie have downgraded this gold miner’s shares to an underperform rating and reduced the price target on them to $2.00. This follows the release of a mixed first quarter update which revealed solid production but higher costs. Combined with a valuation that Macquarie appears to believe is looking stretched and ongoing disruption at Didipio, the broker feels investors would be better off investing elsewhere in the sector. The OceanaGold share price was trading at $2.28 at Friday’s close.
Scentre Group (ASX: SCG)
A note out of UBS reveals that its analysts have retained their sell rating and $2.65 price target on this shopping centre operator’s shares. While the broker felt that the company’s quarterly update was decent given the tough trading conditions it is facing, it was still disappointed with its cash collections. Particularly given that it suspects Scentre is collecting rent that was already recognised in 2020. In light of this, it feels its gross rental collections are actually running 8% below its forecasts. The Scentre share price ended the week at $2.74.