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:
ResMed Inc. (ASX: RMD)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this medical device company's shares to $19.00. While ResMed delivered a stronger than expected profit result in the third quarter, it notes that sleep apnoea diagnosis rates have fallen notably during the pandemic. Macquarie appears concerned this could weigh on its short term performance, which is dangerous given the high multiples its shares trade on. The ResMed share price is down 2.5% to $23.96 at the time of writing.
Transurban Group (ASX: TCL)
A note out of Citi reveals that its analysts have retained their sell rating and $10.15 price target on this toll road operator's shares. According to the note, the broker expects Transurban's revenue to fall more than its traffic volumes due to toll relief measures it is taking for drivers in financial distress. In light of this, it suspects that its distributions could be impacted greatly in the near term. The Transurban share price is changing hands for $13.76 this afternoon.
Westpac Banking Corp (ASX: WBC)
Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this banking giant's shares to $15.00. According to the note, Westpac's revenue and margins came in ahead of expectations during the first half. However, the broker remains bearish on the banking giant and has previously warned that it could be in the middle of a downgrade cycle due to lower revenue and higher costs. The Westpac share price is up over 1% to $15.94 this afternoon.
