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:
InvoCare Limited (ASX: IVC)
According to a note out of Citi, its analysts have retained their sell rating but lifted the price target on this funeral company's shares to $13.50. Whilst the broker is pleased that its recent capital raising resolves its gearing issue, it appears concerned by the uncertainty around increasing competition in the industry. In light of this, it feels its shares shouldn't be trading at such a premium to the market average. InvoCare's shares are down 1.5% to $15.09 this afternoon.
Suncorp Group Ltd (ASX: SUN)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this insurance and banking giant's shares to $13.35 following its quarterly update. According to the note, the broker is concerned with Suncorp's impairment levels and believes margin pressures will continue in the near term. The broker suspects this could result in the company giving lower than expected guidance for FY 2020 when it releases its full year results in August. The Suncorp share price is currently up 0.5% to $13.60.
TPG Telecom Ltd (ASX: TPM)
Analysts at Credit Suisse have retained their underperform rating and $5.60 price target on this telco company's shares after the ACCC blocked its merger with Vodafone Australia. According to the note, the broker believes there is a chance that the two parties will overturn the decision in the Federal Court, but that the outcome is both uncertain and likely to take 12 months or more. In afternoon trade the TPG Telecom share price is trading slightly lower at $6.03.
