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:
Afterpay Touch Group Ltd (ASX: APT)
According to a note out of UBS, its analysts have reiterated their sell rating and $17.25 price target on this payment company's shares. Although it notes that the Afterpay share price has pulled back in recent weeks, it still believes it can fall materially lower. The broker has concerns over competitive pressures, increasing regulatory scrutiny, and its execution. In addition to this, it notes that the business model hasn't been tested through the full economic cycle. The Afterpay share price is up at $26.27 on Thursday.
Blackmores Limited (ASX: BKL)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this health supplements company's shares to $58.00. According to the note, the broker feels the market is looking beyond its recent profit downgrade on the belief that its earnings have now bottomed. But Macquarie doesn't feel this is wise and notes that its shares have a very strong recovery priced into them. The Blackmores share price is currently trading at $82.42.
Medibank Private Ltd (ASX: MPL)
Analysts at Credit Suisse have retained their underperform rating and $2.90 price target on this private health insurer's shares. According to the note, the broker acknowledges that Medibank's shares have fallen heavily recently, particularly after yesterday's disappointing claims update. However, this is not enough of a pullback for the broker to change its rating. It still believes its shares are overvalued at the current level. Medibank shares are currently changing hands at $3.09.
