On Monday I looked at three ASX shares that have been given buy ratings by brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all been given sell ratings. Here's why:
Premier Investments Limited (ASX: PMV)
According to a note out of Citi, its analysts have retained their sell rating and trimmed the price target on this retail group's shares to $15.60 following the release of its half year results. Although the broker was very impressed with the performance of the company's Apparel brands, it appears concerned by management's decision to change its Smiggle strategy for a third time after a slowdown in its sales growth. This uncertainty means Citi has reduced its earnings forecasts and retained its sell rating. The Premier Investments share price is currently trading at $15.81.
Seven West Media Ltd (ASX: SWM)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and 45 cents price target on this media company's shares. According to the note, the broker has retained its sell rating on Seven West Media's shares after recent data pointed to sustained weakness in the television advertising market. The company's shares are currently trading at 50 cents, just a touch higher than its 52-week low of 49 cents.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgan Stanley have also held firm with their underweight rating and $24.30 price target on this banking giant's shares after it announced further customer remediation provisions. Those provisions are expected to reduce Westpac's first half cash earnings by $260 million. The broker notes that the bank is not yet able to provide a final estimate for its total refunds for customers of its aligned advisers. It suspects that these remediation costs could be higher than expected and weigh on the company's shares. The Westpac share price is currently trading at $25.95.
