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:
GUD Holdings Limited (ASX: GUD)
According to a note out of UBS, its analysts have retained their sell rating and $9.50 price target on this products company's shares following its investor day event this week. Although management reiterated its earnings growth guidance for FY 2020 at its investor day event, UBS isn't convinced it will be achieved due to currency headwinds and increasing competition. The GUD share price is down slightly at $10.43 on Thursday afternoon.
HUB24 Ltd (ASX: HUB)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $8.72 price target on this investment platform company's shares following the Reserve Bank of Australia's rate cut. According to the note, the broker believes that the majority of HUB24's accounts will now generate negative returns on cash holdings net of administration fees. It appears concerned that this could weigh on fund flows and ultimately its growth. The HUB24 share price is down 1.5% to $11.11 today.
National Australia Bank Ltd (ASX: NAB)
Analysts at Morgan Stanley have downgraded this banking giant's shares to an underweight rating and cut the price target on them to $25.60 following the release of its disappointing customer-related remediation update on Wednesday. According to the note, the broker believes that NAB's revenue outlook is deteriorating and that it doesn't deserve to trade at a premium to any of the other big four banks. The NAB share price has fallen over 3% to $28.11 on Thursday afternoon amid general weakness in the banking sector.
