On Thursday 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 retained their underperform rating but lifted the price target on this gold miner's shares to $1.40. Although Dacian delivered a strong first quarter update which was ahead of expectations, it hasn't been enough for the broker to change its rating. It remains cautious on the company and wants to see it maintain this positive momentum throughout FY 2020. The Dacian share price is up 1% to $1.51 on Friday afternoon.
Netwealth Group Ltd (ASX: NWL)
A note out of Credit Suisse reveals that its analysts have downgraded this investment platform provider's shares to an underperform rating with a $7.60 price target following the release of its first quarter update. According to the note, the broker made the move partly on valuation grounds. It notes that its shares are trading on sky high multiples, which it believes limits upside potential for them. In addition to this, it has concerns over the narrowing of its revenue margin and fears this will hold back its growth. Netwealth's shares have sunk 6% lower to $8.66 on Friday.
Whitehaven Coal Ltd (ASX: WHC)
Analysts at Goldman Sachs have retained their sell rating and $2.90 price target on this coal miner's shares ahead of its quarterly update. According to the note, the broker continues to be bearish on Whitehaven Coal due to the weak outlook for thermal and semi-soft coal. It believes this will weigh on its earnings in FY 2020 and suggests investors look elsewhere in the sector for investments. The Whitehaven Coal share price is up almost 2% to $3.16 this afternoon.
