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:
ASX Ltd (ASX: ASX)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and lifted the price target on this stock exchange operator's shares to $71.50. This follows the release of its April update last week. Although Macquarie notes strong average daily volume growth and a sharp increase in capital raisings during the second half, it still feels its shares are overvalued at the current level. It estimates that ASX Ltd's shares are changing hands at 31x estimated full year earnings. Its shares are trading at $83.00 this afternoon.
Cochlear Limited (ASX: COH)
According to a note out of Goldman Sachs, its analysts have retained their sell rating and $156.00 price target on this hearing solutions company's shares following its recent trading update. That update revealed that Cochlear's sales were down 60% in April because of a sharp reduction in elective surgeries during the pandemic. And although there has been a recovery in elective surgeries now, the broker isn't overly confident on the trajectory of the recovery. It suspects it may take longer than the market expects and therefore holds firm with its sell rating. Cochlear's shares are changing hands for $187.98 on Tuesday.
Domain Holdings Australia Ltd (ASX: DHG)
Analysts at Morgans have retained their reduce rating and $2.25 price target on this property listings company's shares. According to the note, the broker expects a sharp decline in listing volumes in the fourth quarter of FY 2020 and further declines in the first two quarters of FY 2021. In light of this, it has reduced its revenue forecasts accordingly. Domain's shares are trading at $2.93 this afternoon.
