On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with them right now.
Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:
ASX Ltd (ASX: ASX)
According to a note out of Deutsche Bank, its analysts have retained their sell rating and $59.70 price target on the Australian stock exchange operator following the release of its March update. Although ASX reported a strong month with record derivatives and an increase in cash market trades, the broker notes that capital raisings were much slower due to volatile markets and the upcoming election. Overall, Deutsche believes its shares are overvalued at current levels. The ASX share price is trading at $71.12 today.
Blackmores Limited (ASX: BKL)
Analysts at Citi have retained their sell rating and $89.50 price target on this health supplements company's shares. According to the note, the broker expects Blackmores to report a disappointing quarterly result later this month. Citi suspects that excess inventory in Chinese channels, weaker consumer sentiment, and the shift away from daigou sellers will have led to fewer orders during the quarter. And although its shares have pulled back this year, its analysts intend to wait for improvements in China before considering a change to their recommendation. The Blackmores share price is trading at $94.37 this afternoon.
Bank of Queensland Limited (ASX: BOQ)
A note out of Goldman Sachs reveals that its analysts have held firm with their sell rating and $9.31 price target on the regional bank's shares ahead of its results release next week. According to the note, the broker expected Bank of Queensland to post an 8% decline in half year cash earnings to $168 million and declare an interim dividend of 34 cents per share. The latter will be down 10.5% from the prior corresponding period. Given its poor performance, Goldman sees more value in some of the big four banks. Bank of Queensland's shares are currently changing hands at $9.48.
