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:
Coles Group Ltd (ASX: COL)
According to a note out of UBS, its analysts have retained their sell rating and $11.30 price target on this supermarket giant's shares following the release of its third quarter sales update. Although the company's sales growth in the March quarter was ahead of its expectations, it believes the outlook for the current quarter is subdued due to the deceleration in sales growth and its increased investment in labour. The Coles share price is currently trading slightly higher today at $12.65.
DEXUS Property Group (ASX: DXS)
A note out of Goldman Sachs reveals that its analysts have downgraded this property group's shares to a sell rating with a $10.70 price target. According to the note, the broker made the move on valuation grounds and concerns that a ramp up in office supply in Sydney could drive a decline in net effective rents over calendar year 2020. The latter is expected to result in a slowdown in its cash earnings growth, putting pressure on its premium valuation. The DEXUS share price is currently trading slightly lower today at $12.71.
HUB24 Ltd (ASX: HUB)
Analysts at Macquarie have retained their underperform rating but lifted the price target on this investment platform provider's shares to $10.47 following the release of its quarterly update. According to the note, although the broker notes that HUB24's quarterly flows were strong, it believes margin pressure will impact its earnings growth in the medium term. Macquarie expects HUB24 to post earnings per share of 16.7 cents in FY 2019 and then 25.9 cents in FY 2020. This means its shares are changing hands at a lofty 58x estimated FY 2020 earnings. HUB24's shares are trading slightly higher today at $14.90.
