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:
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)
According to a note out of UBS, its analysts have retained their sell rating and NZ$12.60 (A$12.19) price target on this medical device company’s shares. UBS has been looking through the results of US-based rival Vapotherm and believe that the threat to Fisher & Paykel is limited and its market share is stable. However, due to the premium that its shares are trading at, the broker has held firm with its sell rating for now. The company’s shares are currently trading at $14.14.
Sigma Healthcare Ltd (ASX: SIG)
Analysts at Morgan Stanley have retained their underweight rating and 47 cents price target on the pharmacy chain operator and distributor’s shares after its rejection of the Australian Pharmaceutical Industries Ltd (ASX: API) merger proposal. According to the note, the broker is concerned that both companies could experience a deterioration in profitability if the merger doesn’t go ahead due to challenges in the industry. The Sigma share price fell heavily on Wednesday but is still trading notably higher than Morgan Stanley’s price target at 53.5 cents.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $13.70 price target on this wine company’s shares. According to the note, the broker has held firm with its sell rating despite recent industry data being supportive of the company’s future growth. Goldman remains negative on the investment opportunity due to concerns over increasing risks with its working capital, the company’s growing reliance on new brands and regional products, and its belief that its shares have run too hard. The Treasury Wine Estates share price is currently changing hands at $15.13.
Whilst those are the shares to sell, here are the ASX shares rated as buys right now.
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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 Treasury Wine Estates Limited. 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.