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:
Cochlear Limited (ASX: COH)
According to a note out of UBS, its analysts have retained their sell rating and $173 price target on this hearing solutions company's shares. The broker believes that its shares are overvalued based on its current growth profile. This is even the case for UBS after factoring robust sales of cochlear implants over the medium term into the equation. Cochlear's shares are currently changing hands notably higher than this price target at $201.81.
Oil Search Limited (ASX: OSH)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and trimmed the price target on this energy producer's shares to $6.05. According to the note, the broker was a touch underwhelmed with Oil Search's quarterly update. It notes that its production guidance has been downgraded and its production costs are rising. In light of this, it remains bearish on its prospects. Though, it does note that its Papua New Guinea expansion could provide upside if it is completed on schedule. Oil Search's shares are trading at $7.20 this afternoon.
ResMed Inc. (ASX: RMD)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on ResMed's shares to $15.70 ahead of its quarterly update. According to the note, the broker believes its shares are a touch on the expensive side and investors may not be factoring the full risks involved with reimbursement changes and new technologies. The ResMed share price is trading at $18.55 today.
