On Wednesday I looked at three ASX shares that broker had named as buys this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:
Harvey Norman Holdings Limited (ASX: HVN)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and $2.90 price target on this retailer's shares after reviewing its performance during the first half. Goldman continues to be bearish on Harvey Norman due to its heavy exposure to the waning housing market. It points out that the majority of the products that it sells are correlated with the housing market and could struggle in the coming months. The broker also has concerns over signs of weakness in growth in Singapore and Malaysia and potential declines in property valuations. The Harvey Norman share price is currently trading at $3.86.
Myer Holdings Ltd (ASX: MYR)
A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this department store operator's shares to 44 cents following its half year results release on Wednesday. According to the note, Myer's first half result was stronger than Citi expected thanks to improvements in its gross margin due to lower discounting and operating costs. However, its analysts have concerns over this strategy and don't believe it will lead to sustainable sales growth in the future. Overall, it believes that Myer's earnings will remain under pressure in the medium term. The Myer share price is currently trading at 46.5 cents.
OZ Minerals Limited (ASX: OZL)
Analysts at Credit Suisse have retained their underperform rating but lifted the price target on this copper miner's shares to $9.50 after it completed the scoping study on the Carrapateena Block Cave Expansion. That scoping study determined that replacing the lower half of the sub level cave with a block cave and expanding the annual throughput rate from 4.25 Mtpa to 10 – 12 Mtpa from 2026, would have the potential to create significantly more value than the sub level cave alone. Whilst this is a positive, the estimated expenditure is higher than the broker expected. OZ Minerals shares are currently changing hands at $10.31.
