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:
Appen Ltd (ASX: APX)
According to a note out of Macquarie, its analysts have downgraded this artificial intelligence data services company’s shares to an underperform rating and cut the price target on them to $9.50. The broker notes that there is an emerging trend which is seeing some tech giants bypassing Appen and directly crowdsourcing for data annotation services. In response, the broker has cut its forecasts well below consensus estimates and suspects the company could soon downgrade its guidance. The Appen share price ended the week at $9.45 after falling 19% on Friday.
DEXUS Property Group (ASX: DXS)
A note out of Citi reveals that its analysts have retained their sell rating and $9.54 price target on this property company’s shares. This follows news that Dexus is selling its 100% owned office asset, 383 Kent Street for $385 million. This is a 1.3% premium to its June book value. While the broker notes that pricing is relatively strong, it highlights Dexus’ active diversification from office properties and sees potential for further weakness in rental markets. It believes this is likely to feed into office asset pricing and weigh on its performance. The Dexus share price was fetching $11.03 at Friday’s close.
TechnologyOne Ltd (ASX: TNE)
Another note out of Macquarie reveals that its analysts have downgraded this enterprise software company’s shares to an underperform rating but with an improved price target of $11.00. This follows the release of the company’s full year results last week. While the broker has increased its earnings estimates for the coming years, it wasn’t enough for a more positive recommendation. Macquarie believes TechnologyOne’s shares are expensive in comparison to peers. The TechnologyOne share price ended the week at $11.56.