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:
Amcor PLC (ASX: AMC)
According to a note out of Goldman Sachs, its analysts have reiterated their sell rating and $13.00 price target on this packaging company's shares. The broker has become more bearish on Amcor after its major customer, Pepsi, advised of plans to reduce virgin plastic in its beverage bottles by 35% by 2025. The broker believes that this news, and the likelihood of other companies doing the same, poses a risk to Amcor's volume growth. The Amcor share price is down 3% to $14.20 on Tuesday.
Bank of Queensland Limited (ASX: BOQ)
Analysts at Morgan Stanley have retained their underweight rating and $8.40 price target on this regional bank's shares. According to the note, the broker remains bearish on the bank due to weak mortgage loan growth and margin pressures. In light of this, the broker believes there is a possibility that another cut to its dividend could be necessary in the near term. The bank's shares are currently trading 0.5% lower at $9.82 this morning.
Sims Metal Management Ltd (ASX: SGM)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this scrap metal company's shares to an underperform rating from neutral and slashed the price target on them to $9.30. The broker made the move in response to its disappointing trading update which was released on Monday and revealed that first half profits will be down materially compared to the prior corresponding period due largely to weak demand because of the trade war. In light of this, Macquarie has downgraded its earnings estimates for FY 2020 and FY 2021 significantly, leading to the large target price reduction. The Sims Metal share price is down 2.5% to $10.65 today.
