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:
Macquarie Group Ltd (ASX: MQG)
According to a note out of Citi, its analysts have downgraded this investment bank's shares to a sell rating with a $123.50 price target. The broker made the move on valuation grounds after an impressive share price gain over the last 12 months. Citi notes that its earnings momentum is starting to slow and feels it could put pressure on its share price. The Macquarie share price is changing hands at $145.40 on Thursday afternoon.
ResMed Inc. (ASX: RMD)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and lifted the price target on this medical device company's shares to $17.00. The broker believes that ResMed's valuation is looking stretched and notes the significant premium its shares are trading at compared to fellow medical device peers. The ResMed share price is trading notably higher than this price target at $24.40 on Thursday.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Credit Suisse have retained their underperform rating and lifted the price target on this airport operator's shares to $6.90. According to the note, the broker believes the coronavirus outbreak will cause a short but severe impact to international traffic numbers. In light of this, the broker has downgraded its earnings estimates for the first half of FY 2020 accordingly. It also warned that management could provide cautious guidance for the year ahead when it releases its full year results next month. The Sydney Airport share price is trading 1% lower at $8.29 this afternoon.
