On Tuesday I looked at three ASX shares have been given buy ratings by brokers this week.
Not all shares have been fortunate enough to have the coveted buy rating placed on them, though.
The three shares below have all been given sell ratings this week. Here’s why:
Blackmores Limited (ASX: BKL)
According to a note out of Morgan Stanley, its analysts have initiated coverage on Blackmores with an underweight rating and $104.00 price target. While the broker believes that China’s middle class and the health and wellness trend are supportive of its growth, it does have concerns over the quality of its earnings. In addition to this, it believes that the company needs to improve its inventory controls in the massive China market.
Netwealth Group Ltd (ASX: NWL)
A note out of UBS reveals that its analysts have retained their sell rating and $7.20 price target on this investment platform provider following the release of its quarterly update. The broker notes that the December quarter was the first time since listing that net flows declined. While its analysts believe that Netwealth is likely to rebound from this due to the quality of its offering, it is concerned that the market has not priced in competitive risks that the company faces
ResMed Inc. (ASX: RMD)
Analysts at the Macquarie equities desk have retained their underperform rating and cut the price target on this sleep treatment-focused medical device company’s shares to $13.70 following the release of its second quarter results. According to the note, ResMed’s results came in below the broker’s estimates and its cost guidance was ahead of expectations. Macquarie does see software acquisitions as a way to ignite its growth, but has concerns over its core sleep treatment business in the short term.
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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 and has recommended Blackmores Limited. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended ResMed Inc. 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.