Although AGM season is winding down, many of Australia's leading brokers are still as busy as ever and have released a good number of broker notes this week.
Three shares which haven't fared so well from these notes are listed below. Here's why they have been given sell ratings:
ASX Ltd (ASX: ASX)
According to a note out of UBS, its analysts have downgraded the Australian Stock Exchange operator to a sell rating with a $52.90 price target following its decision to replace CHESS with a distributed ledger technology. The broker has stated that the financial implications of the switch are largely unknown at this stage and believes the boost it has given its share price is likely to fade. Overall, the broker thinks its shares are overvalued and I would agree. Its shares are priced at 25x estimated forward earnings and I think investors could find better value for money elsewhere.
Platinum Asset Management Limited (ASX: PTM)
Analysts at Macquarie have retained their underperform rating on the fund manager's shares following the release of its funds under management update yesterday. The broker has, however, raised its price target slightly to $5.21. Though, this is still significantly lower than its current share price due to the broker's belief that its funds growth does not justify the premium its shares trade at. While I wouldn't necessarily be a seller of its shares, I wouldn't be a buyer unless they came down a good 10% from where they trade today.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Citi reveals that its analysts have retained their sell rating and $10.90 price target on the wine company's shares. The broker believes that the loss of market share in the Americas and Australia and weak pricing in Europe are likely to offset the strong demand in Asia. Once again, while I wouldn't be selling shares if I owned them, at 41x trailing earnings I'd only buy Treasury Wine Estates' shares now if there was a pull-back in its share price.
