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 ASX 200 shares that have just been given sell ratings by brokers are listed below.
Here's why these brokers are bearish on them:
Suncorp Group Ltd (ASX: SUN)
According to a note out of Credit Suisse, its analysts have downgraded this insurance and banking giant's shares to an underperform rating and cut the price target on them to $8.75. The broker believes Suncorp's earnings growth will be challenging in the future and is forecasting lower than target return on equity. And while it has just announced a new operating model, it doesn't appear overly convinced that this will be enough and is expecting further changes. The Suncorp share price is trading at $8.85 this afternoon.
Tabcorp Holdings Limited (ASX: TAH)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted the price target on this gambling company's shares slightly to $2.80. The broker has lifted its earnings estimates very slightly to reflect the new reseller agreement with Jumbo Interactive Ltd (ASX: JIN). However, it feels Tabcorp could have got a better deal. As a result, it sees no reason to make any changes to its rating and feels its shares are expensive at the current level. The Tabcorp share price is trading notably higher at $3.42 this afternoon.
Webjet Limited (ASX: WEB)
Analysts at Morgan Stanley have retained their underweight rating and $3.30 price target on this online travel agent's shares. This follows the announcement of a $163.1 million convertible note offering which will be used to repay debt and fund potential acquisitions. While this will boost its liquidity, which has decreased markedly over the last few months, it isn't enough for a change of rating. Morgan Stanley continues to believe Webjet's shares are overvalued. The Webjet share price is fetching $3.59 on Thursday.
