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:
Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have retained their sell rating and $82.50 price target on this health supplements company's shares following the release of its shareholder briefing. Although the broker sees positives in recent strategic initiatives, it isn't enough for a change in rating. Citi wants to see positive results from its execution in China and new product development before considering any changes. The Blackmores share price is currently trading 3% higher at $96.33.
Metcash Limited (ASX: MTS)
Analysts at Credit Suisse have downgraded this wholesale distribution and marketing company's shares to an underperform rating with a $2.69 price target. According to the note, the broker has concerns over the widening digital capability gap and expects it to be a headwind for independent food retailers. In addition to this, Credit Suisse believes its shares have become overvalued following a strong share price rally in 2019. Prior to today the Metcash share price had gained around 23% since the start of the year. Its shares are down 1.5% to $2.96 this morning.
Mirvac Group (ASX: MGR)
A note out of UBS reveals that its analysts have retained their sell rating on this diversified Australian property group's shares but raised the price target on them slightly to $2.64. According to the note, the broker believes the recent $750 million placement has strengthened its balance sheet and should underpin solid distribution growth, however it isn't enough for an upgrade. UBS continues to believe that its shares are fully valued at the current level. The Mirvac share price is down 3% to $3.01 this morning.
