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 UBS, its analysts have looked over this regional bank’s full year results and held firm with their sell rating and $8.25 price target. The broker notes that Bank of Queensland fell short of its expectations and cut its dividend further than forecast. UBS doesn’t expect things to get any easier in the near term and thus retains its bearish view. The Bank of Queensland share price is down 2.5% to $9.42 on Thursday.
Rio Tinto Limited (ASX: RIO)
Analysts at Credit Suisse have retained their underperform rating and $86.00 price target on this mining giant’s shares following its first quarter update. According to the note, Rio Tinto’s update was largely in line with its expectations. However, it didn’t contain anything that it believes warrants a change in rating at this stage. The Rio Tinto share price is trading 2.5% lower at $87.62 on Thursday afternoon.
Reject Shop Ltd (ASX: TRS)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $1.30 price target on this discount retailer’s shares. On Wednesday Reject Shop revealed that its comparable store sales had grown 0.3% during the first quarter of FY 2020. According to the note, the broker feels it is a little soon to get excited. Especially given how management provided no commentary on profit margins. Furthermore, it notes that the next three months are critical for the company and will have the biggest impact on its full year results. The Reject Shop share price is up 3.5% to $2.30 on Thursday.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.