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:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $27.00. While the broker notes that its capital raising has significantly de-risked its operating model and means it should be able to fund the next couple of years of underlying sales estimates, it still feels its shares are wildly overvalued at the current level. The Afterpay share price is up over 10% to $73.05 this afternoon.
AGL Energy Limited (ASX: AGL)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating and cut the price target on this energy company’s shares to $13.70. The broker believes that electricity demand has been resilient since its last update and expects the company to announce a share buyback with its full year results. However, it remains concerned by its prospects in FY 2021 due to weak wholesale prices. The AGL Energy share price is changing hands for $17.01 today.
Northern Star Resources Ltd (ASX: NST)
Another note out of UBS reveals that its analysts have retained their sell rating but lifted the price target on this gold miner’s shares to $14.25. Although Northern Star’s latest quarterly update was better than it expected, it remains concerned that the gold miner’s guidance for FY 2021 will fall short of expectations. It believes the market is expecting too much and that lower grades will weigh on its overall production. The Northern Star share price is up at $14.95 this afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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