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:
Amcor PLC (ASX: AMC)
According to a note out of Goldman Sachs, it has retained its sell rating and $13.50 price target on this packaging company's shares after Coca Cola and Pepsi announced plans to trial still water in aluminium cans in response to customer pushback against plastic waste. As 22% of Amcor's sales relate to plastic beverage containers, this could be bad news for the company's outlook. Overall, the broker believes the plastic packaging pushback from consumers is a material risk that investors ought to take note of. The Amcor share price is down 3.5% to $14.60.
Magellan Financial Group Ltd (ASX: MFG)
A note out of Citi reveals that its analysts have downgraded this fund manager's shares to a sell rating from neutral with a $54.00 price target. According to the note, Magellan's full year results were largely in line with its estimates. However, given the multiples its shares now trade on, it believes the risk/reward on offer isn't compelling enough to own its shares. Magellan's shares are trading 6% lower at $52.20 today.
St Barbara Ltd (ASX: SBM)
Analysts at Credit Suisse have retained their sell rating and $2.76 price target on this gold miner's shares ahead of its full year results release. According to the note, the broker believes that investors will be focused largely on the company's guidance for FY 2020 and that its shares could come under pressure if the guidance for its recently acquired Atlantic Gold business disappoints. The St Barbara share price is up 2% to $3.75 on Thursday. It will report its full year results on August 21.
