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:
Qantas Airways Limited (ASX: QAN)
According to a note out of Credit Suisse, its analysts have downgraded this airline operator's shares to an underperform rating with a $2.20 price target. The broker has been looking at the travel sector and appears concerned that things could take longer than expected to recover. Credit Suisse has suggested that a full recovery may not be seen until FY 2023. In addition to this, it suspects that the majority of its future free cash flow may be used to repair its balance sheet in the near term. This could put pressure on its dividends. The Qantas share price is changing hands at $3.19 on Thursday.
Redbubble Ltd (ASX: RBL)
Analysts at Morgans have downgraded this ecommerce company's shares to a reduce target and slashed the price target on them by a third to 50 cents. According to the note, the broker notes that Redbubble's sales growth has become turbulent during the coronavirus crisis. And while the company has a cash balance of $31 million at present, it suspects that a capital raising could be coming later this year. The Redbubble share price is trading at 57.5 cents this afternoon.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Another note out of Credit Suisse reveals that its analysts have downgraded this airport operator's shares to an underperform rating with a $4.50 price target. According to the note, as mentioned above, the broker has concerns about how long the travel and tourism market may take to recover. It has suggested Sydney Airport might not see a full recovery in domestic passenger numbers until 2023. For international passenger numbers, it suspects that it might be 2024 before they rebound fully. The Sydney Airport share price is changing hands for $5.47 on Thursday.
