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 retained their underperform rating and $5.50 price target on this embattled infant formula company's shares. Although the broker is seeing improvements on Chinese ecommerce platforms, it isn't enough for a change of rating. The broker continues to believe that the company will underperform the market's expectations in the coming years. Particularly given the weakness in the daigou channel. The a2 Milk share price ended the week at $5.97.
BWP Trust (ASX: BWP)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target slightly on this Bunnings landlord's shares to $2.90. This follows the release of a full year result that fell a touch short of the broker's expectations. And while operating trends are solid, it doesn't see enough value in its shares to have a more positive rating. Though, it does see upside risk from earnings accretive acquisitions. The BWP share price was trading at $4.02 at Friday's close.
Mineral Resources Limited (ASX: MIN)
Analysts at Morgan Stanley have retained their underweight rating but lifted their price target on this mining and mining services company's shares to $49.70. According to the note, the broker believes the market is overlooking a number of risks. This includes the successful execution of new projects and the potential for a widening discount for low grade iron ore. The Mineral Resources share price ended the week at $58.95.
