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:
Computershare Ltd (ASX: CPU)
According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this share registry company’s shares to $15.00. Citi has downgraded its earnings estimates for Computershare to reflect a tough near term outlook and margin income weakness. It also has concerns that its guidance for FY 2022 could disappointment the market and weigh on its shares. The Computershare share price ended the week at $16.14.
Dacian Gold Ltd (ASX: DCN)
A note out of Macquarie reveals that its analysts have downgraded this gold miner’s shares to an underperform rating with a reduced price target of 28 cents. This follows a disappointing end to FY 2021, which led to Dacian Gold falling short of its guidance. But perhaps the biggest disappointment was the company’s capital expenditure guidance for Mt Morgans, which was significantly greater than Macquarie was anticipating. The Dacian Gold share price ended the week at 31 cents.
Wesfarmers Ltd (ASX: WES)
Another note out of Citi reveals that its analysts have retained their sell rating and $45.00 price target on this conglomerate’s shares. According to the note, the broker was expecting Wesfarmers to use its excess capital for acquisitions. However, it sees few synergies from its potential acquisition of Australian Pharmaceutical Industries Ltd (ASX: API). And while it sees the acquisition as a way to boost its post-pandemic growth, it feels it will need to make further investments to realise this. The Wesfarmers share price was fetching $59.12 at the end of the week.