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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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 embattled financial services company's shares. UBS notes that consensus estimates for AMP's results have been lowered. Despite this, it feels the market continues to expect too much from the struggling company and is forecasting a result well short of expectations. The AMP share price was trading at 96 cents on Friday.
ARB Corporation Limited (ASX: ARB)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this 4×4 parts manufacturer's shares to $40.60. While Credit Suisse was pleasantly surprised to see ARB outperform its estimates during the first half of FY 2022, it isn't enough for a change of rating. Credit Suisse still believes ARB's shares are overvalued at the current level and has concerns that its margins are unsustainable. The ARB share price was fetching $44.33 at Friday's close.
Commonwealth Bank of Australia (ASX: CBA)
Analysts at Morgans have retained their reduce rating and $74.00 price target on this banking giant's shares. According to the note, the broker continues to believe that CBA's shares are overvalued at the current level and don't deserve to trade at such a premium to the rest of the big four banks. Morgans is expecting first half cash earnings of $4.320 billion and a fully franked interim dividend of $1.74 per share. CBA will no doubt need to deliver something significantly better than this to change Morgans' mind about its shares. The CBA share price was trading at $94.10 at Friday's close.
