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:
DEXUS Property Group (ASX: DXS)
According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company's shares. Although the broker acknowledges that DEXUS has been diversifying its operations through recent transactions, it notes that offices still make up the majority of its rent. Citi has concerns over office rents due to structural headwinds. The DEXUS share price ended the week at $10.78.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Morgans reveals that its analysts have retained their reduce rating and cut the price target on this iron ore producer's shares to $14.15. The broker believes that iron ore prices could weaken further from here due to lower demand in China. This is particularly the case for Fortescue's lower grade ore. This is due to steel mills prioritising high grade to help minimise the amount of coke required against a backdrop of record hard coking coal prices. The Fortescue share price was fetching $15.34 at Friday's close.
Premier Investments Limited (ASX: PMV)
Analysts at Goldman Sachs have retained their sell rating and lifted their price target on this retail conglomerate's shares to $23.40. This follows the release of a full year result that fell short of its expectations. While Goldman has increased its FY 2022 and FY 2023 forecasts by over 10%, it still doesn't see enough value in its shares to change its rating. The broker continues to believe Premier Investments' shares are overvalued compared to peers. The Premier investments share price ended the week at $29.15.
