On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:
ASX Ltd (ASX: ASX)
According to a note out of Morgans, its analysts have retained their reduce rating but lifted the price target on this stock exchange operator's shares to $72.14 following its half year results release. ASX Ltd delivered a result which was in line with the broker's expectations. But this wasn't enough for a change of rating. Morgans continues to believe that its shares are expensive at the current level and therefore holds firm with its reduce rating. The ASX Ltd share price is trading at $82.17 this afternoon.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and trimmed the price target on this regional bank's shares to $8.75. According to the note, the broker was pleasantly surprised by Bendigo and Adelaide Bank's margin trends in the first half. However, it doesn't appear confident that the trends will stay positive for long. It expects margin pressures to reappear in the second half and weigh on its performance. The Bendigo and Adelaide Bank share price is down 5% to $10.02 this afternoon.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Another note out of Morgans reveals that its analysts have retained their reduce rating but lifted the price target on this biopharmaceutical company's shares to $2.16. According to the note, Paradigm's first half results were largely in line with its expectations. However, the broker continues to believe that the company's shares are overvalued at the current level. It appears to think the market is getting ahead of itself based on inconclusive results from its phase two osteoarthritis trial. The Paradigm share price is currently changing hands notably higher than this price target at $3.99.
