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 investors might want to hear about are summarised below. Here's why top brokers think investors ought to sell these shares next week:
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Boral Limited (ASX: BLD)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this building materials company's shares to $6.10. This follows the release of a trading update. While the broker notes that Boral isn't expecting as negative an impact from lockdowns as previously forecast, it still expects the company to report a significant earnings decline during the first half. In light of this, Morgan Stanley isn't in a rush to change its rating. The Boral share price ended the week at $6.63.
Coles Group Ltd (ASX: COL)
A note out of UBS reveals that its analysts have retained their sell rating and $16.50 price target on this supermarket giant's shares. While UBS acknowledges that Coles delivered a better than expected first quarter sales update, it isn't enough for a change of rating. UBS is bearish on Coles due to its belief that the sales outlook in the sector is deteriorating. The Coles share price was fetching $17.80 on Tuesday.
Fortescue Metals Group Limited (ASX: FMG)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $12.50 price target on this mining giant's shares. This follows the release of Fortescue's first quarter update. Morgan Stanley notes that the company's revenue realisation of 73% was short of its expectations. Looking ahead, the broker doesn't appear to believe that things will get any better and continues to have concerns over the outlook for low grade iron ore prices. The Fortescue share price ended the week at $14.27.
