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Once again, a large number of brokerage ratings fell over the past week. Some of those ratings were positive and some bearish.
Three selling notes that caught my eye are summarized below. Here’s why the top brokers think investors should sell these stocks next week:
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
According to a note on UBS, its analysts have kept their to sell and lowered their target price on the shares of this medical device company to NZ $ 22.65 (A $ 21.34). This follows the publication of the company’s annual results last week. Although the company has seen very strong profit growth, it still has not lived up to the broker’s expectations. Additionally, although management has not provided guidance for fiscal 2022, UBS expects earnings to decline sharply due to the end of favorable winds from COVID-19. Overall, this makes the company’s shares overvalued. The Fisher & Paykel Healthcare share price ended the week at A $ 27.47.
Magellan Financial Group Ltd (ASX: MFG)
A note on Morgan stanley reveals that its analysts have retained their underweight rating and price target of $ 39.60 on the shares of this fund manager. Morgan Stanley looked at the company’s new retirement income product. While he believes the FuturePay product has a lot of potential and could support inflows, it will be capital intensive. In addition, he notes that the company’s active ETFs are experiencing cash outflows. Magellan’s stock price hit $ 48.30 at the end of the week.
Analysts at UBS maintained their sell rating and lowered their price target on this purchase, now paying the supplier’s stock to $ 5.60. According to the memo, the broker acted in the belief that Zip’s margins are threatened by increasing competition in the United States. This would be a disappointment given the higher margins enjoyed by its QuadPay business. He also suspects that a major US bank could enter the market in the future as Commonwealth of Australia Bank (ASX: CBA) in Australia. Zip’s stock price ended the week at $ 7.19.