On Tuesday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here’s why:
AGL Energy Limited (ASX: AGL)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and trimmed their price target on this energy company’s shares to $19.06 following its takeover approach of Vocus Group Ltd (ASX: VOC). Whilst the broker sees some positives in the proposed acquisition, it believes there are a lot of risks for AGL Energy’s shareholders and suspects that it would signal the end of share buybacks. The AGL Energy share price is up just over 1% to $19.64 on Wednesday.
BWP Trust (ASX: BWP)
A note out of Citi reveals that its analysts have reiterated their sell rating and $2.66 price target on this commercial real estate investment manager. According to the note, the broker continues to hold a bearish view on retail landlords due to the large number of assets on the market. It believes this will lead to a sizeable drop in property values and weigh heavily on their performances. The majority of BWP Trust’s properties are rented by Wesfarmers Ltd (ASX: WES) subsidiary Bunnings. Its shares are trading flat at $3.74 today.
Link Administration Holdings Ltd (ASX: LNK)
Analysts at Deutsche Bank have retained their sell rating and $5.30 price target on this administration services company’s shares after it downgraded its FY 2019 guidance. Link advised that it expects FY 2019 operating NPATA of between $195 million and $205 million, which was well short of the market’s expectations and down from $206.7 million in FY 2018. This has been blamed on Brexit, lower capital markets activity, and upcoming superannuation regulatory changes. According to the note, Deutsche was disappointed with its update and feels some of its poor performance is down to the company making acquisitions too hastily. The Link share price is down 1.5% to $5.46 today.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.