On Monday 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 they are bearish on them:
AMP Limited (ASX: AMP)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and slashed the price target on this embattled financial services company's shares to $1.50. It made the move in response to news that the sale of its AMP Life business has been blocked by the RBNZ. Although the sale could still go ahead, it is unlikely to be on as favourable terms. And if it doesn't, the broker believes an equity raising could be required to fund its strategy. The AMP share price is trading flat at $1.81 on Tuesday.
Carsales.Com Ltd (ASX: CAR)
A note out of Morgans reveals that its analysts have downgraded this auto listings company's shares all the way from an add rating to a reduce rating with a $12.49 price target. According to the note, the broker made the move on valuation grounds. It believes that its valuation is looking stretched given its current growth profile. Morgans expects earnings growth in the region of 9% in FY 2020. The Carsales share price is down 0.5% to $13.73 on Tuesday afternoon.
NIB Holdings Limited (ASX: NHF)
Analysts at Citi have downgraded this private health insurer's shares from a neutral rating to sell with an improved price target of $7.05. According to the note, although the broker expects NIB to deliver a strong full year result, it feels that the post-election share price rally has gone too far and left its shares overvalued. Earlier today Goldman Sachs also downgraded its shares to a sell rating for similar reasons. NIB's shares are down 4% to $7.36 this afternoon.
