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:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $8.40 price target on this regional bank's shares after it revealed that ASIC has commenced proceedings against it alleging unfair contract terms for some small business lending. Its analysts appear to believe the uncertainty that this brings is yet another reason to be bearish on the bank. The broker has previously suggested that the bank could struggle because of weak mortgage loan growth and downward pressure on margins. The bank's shares are up 0.5% to $9.06 on Thursday.
Coca-Cola Amatil Ltd (ASX: CCL)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $8.30 price target on the beverage company's shares. According to the note, the broker believes that the company's shares are overvalued and notes the significant premium that they trade at compared to global bottling peers. In addition to this, it believes that Coca-Coca Amatil's category exposure remains underwhelming and skewed towards low growth categories, especially in Australia and Indonesia. The Coca-Cola Amatil share price is up slightly to $10.96 this afternoon.
Independence Group NL (ASX: IGO)
Analysts at Citi have retained their sell rating and lifted the price target on this nickel producer's shares to $5.90. According to the note, the broker lifted its price target to reflect the higher forecasts for the price of nickel following Indonesia's decision to bring forward its export ban. However, with its shares still trading above this price target, the broker has retained its sell rating on valuation grounds. Independence Group's shares are up almost 1% to $6.19 today.
