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:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of UBS, its analysts have retained their sell rating and $7.70 price target on this beverage company's shares following its AGM update. Although the broker was pleased to see growth in Indonesian volumes, it doesn't believe the impact on overall earnings will be material. Furthermore, although the company reiterated its expectation for mid-single digit earnings growth in FY 2020, the broker doesn't appear overly confident with this forecast and sees downside risk to its earnings. The Coca-Cola Amatil share price is up 2% to $9.17 this afternoon.
Mayne Pharma Group Ltd (ASX: MYX)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and slashed the price target on this pharmaceutical company's shares to 55 cents following its disappointing trading update. According to the note, the broker has cut its earnings forecasts materially for FY 2019 and FY 2020 to reflect increased competition for its key Generic Products division. The Mayne Pharma share price has rebounded from its selloff on Tuesday and is up 5% to 58 cents today.
St Barbara Ltd (ASX: SBM)
Analysts at Credit Suisse have downgraded this gold miner's shares to an underperform rating and cut the price target on them to $2.72 after it announced plans to acquire Canada-based low-cost gold producer Atlantic Gold Corporation for A$768 million. According to the note, although the broker thinks it is a good asset, it appears to believe that St Barbara has overpaid and will require success on an exploration level to create value for shareholders. The St Barbara share price is in a trading halt whilst it seeks to raise A$490 million at A$2.89 per new share to part-fund the acquisition.
