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 caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:
According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $30.00. While it has lifted its sales forecasts to reflect Afterpay’s strong start to FY 2021 and its high customer growth and transaction frequency, it still believes its shares are vastly overvalued and has held firm with its sell rating. The Afterpay share price ended the week at $100.50.
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but increased the price target on this safety products company’s shares to $33.35. The broker has been impressed with Ansell’s strong start to FY 2021 and believes it is well-placed to benefit from increased demand for personal protective equipment because of COVID-19. However, over the medium term it isn’t as positive on its prospects and thus feels its shares are reasonably expensive because of this. The Ansell share price last traded at $41.70.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Analysts at Credit Suisse have retained their underperform rating and reduced the price target on this pizza chain operator’s shares to $58.71. The broker notes that its same store sales growth slowed towards the end of the last three months. However, positively, its new store openings are running ahead of expectations. Whether or not this can be maintained, though, is the big question according to the broker. It fears it could be harder to open stores in the European market in the current environment. In light of this, it doesn’t believe its shares offer good value at the current level. The Domino’s share price ended the week at $84.48.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Ansell Ltd. and Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.