On Monday 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:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and $10.70 price target on the beverage giant's shares following its earnings guidance withdrawal this morning. The broker believes the coronavirus outbreak will have a net negative impact on its ANZ business due to the increasing cancellation of social events. It also believes that sales in Indonesia could suffer if the outbreak persists into the Ramadan period. The Coca-Cola Amatil share price is down at $9.78 this afternoon, which is now lower than Goldman's price target.
Cochlear Limited (ASX: COH)
Analysts at UBS have retained their sell rating and cut the price target on this hearing solutions company's shares to $165.00 after it withdrew its earnings guidance. According to the note, the broker expects Cochlear's sales to struggle in 2020 due to the coronavirus outbreak and its impact on elective surgeries. And while it expects the company to maintain its dominant market position, it appears concerned that it could take time before unit sales return to historic levels. The Cochlear share price is trading at $171.98 on Tuesday.
Galaxy Resources Limited (ASX: GXY)
A note out of the Macquarie equities desk reveals that its analysts have retained their sell rating and 50 cents price target on this lithium miner's shares. Although Galaxy shipped far more spodumene concentrate from its Mount Cattlin operation during the first quarter of FY 2020, it notes that management has revised its production guidance lower. And while Macquarie appears confident that lithium prices will improve later this year, it's still too soon for it to change its rating. The Galaxy share price is up at 85 cents this afternoon.
