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:
Ansell Limited (ASX: ANN)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this health and safety products company's shares to an underperform rating and trimmed the price target on them to $27.50. According to the note, the broker believes that recent developments have put its organic revenue growth at risk. Macquarie expects the risks to heighten if the coronavirus outbreak continues to gain traction outside of China. The Ansell share price is down 1% to $29.26 today.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Goldman Sachs have retained their sell rating and lifted the price target on this private hospital operator's shares to $62.00. According to the note, the broker found its performance in the Australian market underwhelming, but not unexpected. Unfortunately, it appears concerned that these challenging conditions won't ease any time soon. As a result, it believes its shares are expensive at the current level and the risks are to the downside for its earnings. The broker added that it sees more attractive risk-reward profiles elsewhere in the sector. The Ramsay share price is trading at $69.85 on Tuesday.
Reece Ltd (ASX: REH)
According to a note out of Citi, its analysts have retained their sell rating and $10.50 price target on this plumbing parts company's shares following its half year results. While Reece delivered a result that was in line with expectations and Citi was pleased with its performance in the U.S. market, it notes that the Australian market is weakening. The broker expects the local market to weigh on its performance in 2020 and fears it could put it at risk of falling short of the market's expectations. The Reece share price is up slightly to $11.74 today.
