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:
Goodman Group (ASX: GMG)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this property company's shares to $11.02. The broker has concerns over minor cap rate shifts, which it feels have the potential to drive material earnings changes due to its high leverage. As a result of this and the current global macro conditions, it has downgraded its earnings estimates over the next three years. This leaves Goldman's earnings estimates around 10% lower than the consensus. The Goodman Group share price is down 0.5% to $12.87 this afternoon.
Orocobre Limited (ASX: ORE)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this lithium miner's shares to $1.80. According to the note, the broker believes the coronavirus pandemic will delay the recovery of the battery materials market until 2021. This hasn't stopped the Orocobre share price from storming higher on Thursday. In afternoon trade the lithium miner's shares are up 3.5% to $2.15.
Perpetual Limited (ASX: PPT)
Analysts at Citi have retained their sell rating and cut the price target on this fund manager's shares to $26.10. According to the note, the broker was reasonably satisfied with Perpetual's inflows during the March quarter. However, it continues to believe that the short term with be challenging for the company and has downgraded its earnings estimates to reflect this. The Perpetual share price is down almost 0.5% to $26.51 this afternoon.
