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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Commonwealth Bank of Australia (ASX: CBA)
According to a note out of Morgans, its analysts have retained their reduce rating and $73.00 price target on this banking giant's shares following a review of the banking sector. While Morgans is positive on the sector, it continues to believe the CBA share price is overvalued at the current level and sees better value on offer with other banks. Morgans has previously stated its belief that the premium CBA's shares trade at to the other big banks is unjustifiably large. The CBA share price ended the week at $97.90.
Insurance Australia Group Ltd (ASX: IAG)
A note out of Morgan Stanley reveals that its analysts have downgraded this insurance company's shares to an underweight rating and cut the price target on them to $3.75. The broker has concerns over IAG's margin outlook and ability to hold onto its market share. In light of this, it feels investors should stay away from the company's shares, even though they're trading close to their 52-week low. The IAG share price was fetching $4.40 at Friday's close.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating and $29.50 price target on this struggling fund manager's shares. According to the note, the broker was pleased to see Magellan's funds under management update reveal an end to its run of net outflows during November. However, given the very poor performance of its flagship fund, which trails its benchmark materially, the broker isn't getting excited. It feels this will weigh on performance fees and fund inflows. The Magellan share price ended the week at $29.12.
