On Monday I looked at three ASX shares have been given buy ratings by brokers this week.
Unfortunately, not all shares have been lucky enough to have been given the highly coveted buy rating this week.
The three shares listed below have all been given sell ratings. Here's why:
Blackmores Limited (ASX: BKL)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $75.00 price target on this health supplements company's shares following the resignation of its chief executive officer on Tuesday. Its analysts are concerned that the change in the top job could heighten near-term earnings risk at a time when the company is struggling. The Blackmores share price is currently trading at $94.23, which means Morgan Stanley's price target implies potential downside of approximately 20%.
HUB24 Ltd (ASX: HUB)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this investment platform company's shares slightly to $9.90 following the release of its half year result. According to the note, the broker was disappointed with its first half performance and suspects that management delayed certain costs in the second half of FY 2018 and is paying the price for it now that market movements have turned negative. HUB24's share price is currently trading at $11.84.
InvoCare Limited (ASX: IVC)
Analysts at Deutsche Bank have retained their sell rating but increased the price target on this funerals company's shares to $11.70 after the release of its full year result. According to the note, the broker believes there are signs that competition remains fierce and consumers are favouring lower value funerals. Given that costs are rising, this is a concern for the broker. In addition to this, Deutsche is worried about long term structural headwinds facing the company. The InvoCare share price is currently changing hands at $14.60.
