On Thursday 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:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its bearish analysts have reiterated their sell rating and $13.00 price target on this payments company's shares. The broker has concerns that the coronavirus pandemic could cause a severe recession of even a depression. It feels this poses issues for Afterpay, noting that it is essentially an unsecured consumer lending business. This hasn't stopped the Afterpay share price from charging notably higher today. It is up at $29.63 at the time of writing.
Costa Group Holdings Ltd (ASX: CGC)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $2.78 price target on this horticulture company's shares. Although the broker notes that Costa had a solid March quarter, it appears concerned that its performance could soften in the quarters ahead. This is due to competitive pressures and softening international demand due to the coronavirus pandemic. The Costa share price is down 1% to $2.97 this afternoon.
Whitehaven Coal Ltd (ASX: WHC)
Another note out of the Macquarie equities desk reveals that its analysts have downgraded this coal miner's shares to an underperform rating and cut the price target on them to $1.80. According to the note, Whitehaven Coal's quarterly update fell short of its expectations. In light of this, it believes the company will struggle to deliver on its production guidance for the full year. Therefore, it appears to feel that the risk is to the downside at present. Whitehaven Coal's shares have tumbled notably lower today and are now changing hands for $1.77.
