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 retained their underperform rating and $5.70 price target on this artificial intelligence data services company’s shares. This follows news that the company has made a small investment in a synthetic data company Mindtech. Macquarie notes that this will give Appen exposure to a growing synthetic data market and expand its addressable opportunity. However, this isn’t enough for a more positive view. Macquarie continues to have concerns about its outlook and lack of guidance in FY 2022. The Appen share price ended the week at $6.81.
Commonwealth Bank of Australia (ASX: CBA)
Another note out of Macquarie reveals that its analysts have retained their underperform rating and $90.00 price target on this banking giant’s shares. Macquarie believes that Australian banks are likely outperform the broader market in the early stages of the Reserve Bank’s rate rising cycle. This is despite risks to the global economy stemming from Russia’s invasion of Ukraine. However, it believes other banks are better placed to experience margin benefits and continues to see CBA’s shares as expensive. The CBA share price was fetching $99.38 at Friday’s close.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Citi have retained their sell rating and cut their price target on this iron ore miner’s shares to $16.00. While the broker acknowledges that iron ore prices are likely to remain strong in 2022, it isn’t enough for a more positive view. Particularly given Citi’s concerns over the company’s Fortescue Future Industries business. The Fortescue share price ended the week at $18.23.