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:
Dacian Gold Ltd (ASX: DCN)
According to a note out of the Macquarie equities desk, its analysts have downgraded this gold miner's shares to an underperform rating with a $1.20 price target. Although Dacian delivered a stronger than expected full year result in FY 2019, this was largely due to lower depreciation. As a result, this hasn't been enough to stop the broker from downgrading its shares on valuation grounds after a solid share price gain recently. The Dacian Gold share price is down 1.5% on Thursday.
Inghams Group Ltd (ASX: ING)
Analysts at UBS have retained their sell rating and $3.10 price target on this poultry producer's shares. According to the note, the broker believes there are downside risks to its earnings due to rising feed costs caused by the droughts. In addition to this, UBS has concerns over upcoming contract renewals and fears they could be made on less favourable terms. The Inghams share price is up 0.5% to $3.14 on Thursday afternoon.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Citi reveals that its analysts have retained their sell rating and $15.60 price target on this wine company's shares. According to the note, the broker continues to believe that Treasury Wine Estates will struggle with its medium term growth targets. This is partly to do with an expected slowdown in sales growth in the China market due to increasing competition. In addition to this, the broker remains cautious on growth in its Americas segment and has previously noted rising grapes costs as a potential headwind. The Treasury Wine Estates share price is up 1% to $19.02 on Thursday.
