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:
AGL Energy Limited (ASX: AGL)
According to a note out of Citi, its analysts have retained their sell rating and $16.88 price target on this energy company's shares. The broker notes that AGL Energy's shares have been positive performers over the last few months. It believes this is down to its on-market buyback supporting its share price. So with its shares appearing overvalued, its buyback coming to an end, and political pressure possible, the broker suspects that its shares could soon head the other way. The AGL Energy share price is changing hands at $20.54 on Thursday.
Domain Holdings Australia Ltd (ASX: DHG)
A note out of UBS reveals that its analysts have downgraded this property listings company's shares to a sell rating with an improved price target of $3.50. According to the note, whilst UBS believes that new property listings will return to growth in the second half, it isn't enough to justify the premium its shares are trading at. In light of this, it has downgraded its shares to sell rating on valuation grounds. The Domain share price is down 3% to $3.85 today.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Goldman Sachs have retained their sell rating and $15.30 price target on this wine company's shares. According to the note, although the latest data trends from Nielsen data are not as bad as they have been, the broker notes that Treasury Wine's online prices continue to soften. As a result, it continues to forecast below guidance EBITS growth of 14% in FY 2020. This compares to management's guidance of 15% to 20% growth. The Treasury Wine share price is up almost 1.5% to $17.47 today.
