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 these ASX shares:
Adbri Ltd (ASX: ABC)
According to a note out of UBS, its analysts have retained their sell rating and lifted the price target on this building products company's shares slightly to $2.03. The broker appears concerned by the loss of a major and long-standing supply contract with Alcoa Australia. It notes that the loss of this contract has raised questions about its lime business. The Adbri share price is changing hands for $2.25 this afternoon.
Cochlear Limited (ASX: COH)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $159.00 price target on this hearing solutions company. Although Goldman notes that elective surgeries resumed ahead of its expectations, recent restrictions in certain regions have stifled the recovery. The broker also has concerns that more urgent elective work will be prioritised by hospitals, which could weigh on cochlear implant sales. In addition to this, it suspects that many potential users of its products may defer doing so until the pandemic passes. Especially given how many of its target market are in a higher risk age category. In light of this, it feels the market may be expecting too much from Cochlear in the medium term. The Cochlear share price is trading at $197.00 on Tuesday.
Suncorp Group Ltd (ASX: SUN)
Analysts at Credit Suisse have retained their underperform rating and $8.75 price target on this insurance and banking giant's shares. The broker believes Suncorp could disappoint when it releases its full year results later this month. It notes pressure on both revenue and margins. In addition to this, the broker expects Suncorp to cut its final dividend by almost 80% to 9 cents per share. The Suncorp share price is currently fetching $8.78.
