Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were quite bearish.
Three sell ratings that caught my eye are summarised below. Here's why top brokers think investors ought to sell these shares next week:
Computershare Limited (ASX: CPU)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $13.00 price target on this registry services company's shares. Although Computershare reiterated its FY 2020 guidance last week, it doesn't appear overly convinced that it will deliver on this. The broker notes that earnings risks are skewed to the downside due to weakness in global merger and acquisitions and interest income. The Computershare share price ended the week at $16.80.
Commonwealth Bank of Australia (ASX: CBA)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this banking giant's shares slightly to $75.00. According to the note, the broker was disappointed to see CommBank's expenses continue to rise, despite its focus on reducing them. And while it notes that the bank has a strong capital position, it believes there is still a risk that its dividend could be cut in the future. The CommBank share price finished the week at $80.69.
Wesfarmers Ltd (ASX: WES)
Analysts at Citi have retained their sell rating and $34.50 price target on this conglomerate's shares following its annual general meeting. According to the note, the broker felt management's commentary regarding its sales was positive. However, it has concerns that cost pressures are largely offsetting this. As a result, it remains bearish on its near term prospects and retains its sell rating. The Wesfarmers share price last traded at $42.01.
