On Wednesday I looked at three ASX shares that broker have given buy ratings to 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:
Caltex Australia Limited (ASX: CTX)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $25.00 price target on this fuel retailer's shares after its first quarter trading update. In February Caltex recorded a CRM of US$7.34/bbl. This was an increase on January's CRM of US$6.61/bbl, but notably lower than the prior corresponding period's US$9.95bbl. Morgan Stanley is concerned that things may not get easier in the second quarter due to Viva Energy's new pricing strategy and has held firm with its underweight rating. Caltex's shares last traded at $26.61.
TPG Telecom Ltd (ASX: TPM)
Analysts at Citi have retained their sell rating and trimmed the price target on this telco company's shares to $6.70 following the release of its half year results. According to the note, the broker was pleased with the performance of the company's Corporate segment during the half, but notes that the NBN has continued to negatively impact its Consumer business. Overall, Citi doesn't appear to have seen anything in the result to warrant a change of rating. TPG Telecom's shares are currently changing hands at $6.85.
Westpac Banking Corp (ASX: WBC)
A note out of UBS reveals that its analysts have retained their sell rating and $24.50 price target on this banking giant's shares after it announced its exit from personal financial advice. UBS remains bearish on the bank due to its belief that house prices will continue to fall and weigh on Westpac's performance. It also noted an increase in consumer arrears above normal trends in its last update. The Westpac share price last closed at $26.34.
