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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Insurance Australia Group Ltd (ASX: IAG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $3.90 price target on this insurance company's shares. Its analysts believe IAG is growing its gross written premium (GWP) slower than system, which is extending its ongoing market share losses. The broker doesn't appear confident that this trend will reverse any time soon and thus feels investors would be better off looking elsewhere in the sector. The IAG share price ended the week at $4.45.
Magellan Financial Group Ltd (ASX: MFG)
A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this fund manager's shares to $15.40. This follows the release of another update which revealed a further reduction in its funds under management (FUM). In addition, the broker highlights that a ratings agency has downgraded its flagship Global Fund. This may not bode well for its FUM. The Magellan share price was fetching $15.48 at Friday's close.
Reece Ltd (ASX: REH)
Analysts at Citi have retained their sell rating and cut their price target on this plumbing parts company's shares to $16.83. According to the note, although Citi acknowledges that Reece delivered a solid half year result last month, it isn't enough for a change in its recommendation. The broker continues to struggle with the multiples that the company's shares trade on. The Reece share price was trading at $18.94 on Friday afternoon.
