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:
Coles Group Ltd (ASX: COL)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and trimmed the price target on this supermarket giant's shares to $13.17. Whilst the broker acknowledges that competition in the industry is becoming far more rational and is supporting margins, it continues to believe its shares are overvalued. It also notes that Coles is lagging behind its main rival in respect to data use and automation. The Coles share price is trading at $14.86 on Thursday afternoon.
Independence Group NL (ASX: IGO)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and trimmed the price target on this nickel producer's shares to $5.40. According to the note, the broker downgraded its earnings forecasts for FY 2020 after revising its nickel price estimates. Goldman made the move on the belief that 2020 will only see a moderate refined global market deficit. It expects global primary nickel output to be supported by a drawdown of Chinese nickel ore stocks and a ramp-up of production in Indonesia. The Independence share price is down 0.5% to $6.34 on Thursday.
Woolworths Group Ltd (ASX: WOW)
Analysts at Morgan Stanley have retained their underweight rating and $28.00 price target on this conglomerate's shares following its sales update. According to the note, Woolworths' first quarter Food sales growth was in line with the broker's expectations. However, it was not expecting a one-off remediation of up to $300 million due to staff underpayment. It estimates that this could impact its EBIT by ~1% in FY 2020. Overall, it continues to believe its valuation is too rich and retains its underweight rating. The Woolworths share price is up 0.5% to $37.35 today.
