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:
AMP Ltd (ASX: AMP)
According to a note out of UBS, its analysts have retained their sell rating and 90 cents price target on this financial services company’s shares. Although AMP’s latest funds under management update was in line with the broker’s expectations, its assets under management disappointed. In light of this and its belief that AMP’s shares are expensive, the broker appears to see no reason to change its recommendation at this point. The AMP share price ended the week at $1.18.
Flight Centre Travel Group Ltd (ASX: FLT)
A note out of Citi reveals that its analysts have retained their sell rating and cut the price target on this travel agent’s shares to $15.55. Citi was disappointed with Flight Centre’s quarterly update, which revealed softer than expected revenue margins. It feels that this and its break-even total transaction value requirement points to the company taking on very low margin revenue. The Flight Centre share price was fetching $20.98 on Friday.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at Morgan Stanley have retained their underweight rating and $11.00 price target on this fund manager’s shares. This follows the release of Magellan’s funds under management update, which the broker estimates saw $1.5 billion flow out of the company’s funds last month. And while Morgan Stanley acknowledges that Magellan’s investment performance improved in April, it is still underperforming on longer term measures, which is unlikely to be supportive on fund inflows. The Magellan share price ended the week at $17.25.