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:
Nanosonics Ltd (ASX: NAN)
According to a note out of Citi, its analysts have initiated coverage on this infection control specialist's shares with a sell rating and $4.40 price target. Although the broker believes that the company is well-positioned to win a material share of the global market over the next decade, it isn't enough for it to be a buyer of its shares at the current level. The Nanosonics share price is down 1.5% to $5.38 on Thursday afternoon. This reduces its year to date gain slightly to a massive 93%.
REA Group Limited (ASX: REA)
A note out of Deutsche Bank reveals that its analysts have resumed coverage on this property listings company's shares will a sell rating and $83.00 price target. According to the note, the broker believes that REA Group has solid growth opportunities both at home and in Asia, but it isn't enough to justify the current premium that its shares are trading at. It effectively believes the market is currently pricing in a level of growth that is unlikely to be achieved. REA Group's shares are currently trading a fraction higher today at $98.08.
Suncorp Group Ltd (ASX: SUN)
Analysts at Morgan Stanley have downgraded this banking and insurance giant's shares to an underweight rating and trimmed the price target on them to $11.90. According to the note, the broker believes the company is likely to have struggled in the second half and expects underwhelming guidance for FY 2020. Especially given the impact of lower yields. The Suncorp share price is down over 1% to $13.52 today.
