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 shares that have just been given sell ratings by brokers are listed below.
Here's why these brokers are bearish on them:
AMP Limited (ASX: AMP)
According to a note out of the Macquarie equities desk, its analysts have downgraded this financial services company's shares to an underperform rating and cut the price target on them to $1.40. The broker made the move after AMP's first half results guidance fell short of expectations. Looking ahead, Macquarie has concerns about its future performance and suspects that material cost reductions (beyond those planned) will be required to maintain its operating earnings. The AMP share price is trading at $1.44 this afternoon.
Cochlear Limited (ASX: COH)
Analysts at UBS have retained their sell rating and $160.50 price target on this hearing solutions company's shares. The broker is expecting Cochlear to deliver a sharp decline in full year profits later this month due to a combination of margin weakness and elective surgery delays because of the pandemic. And while it does expect implant sales to rebound once the pandemic passes, it isn't enough for it to change its view at this point. The Cochlear share price is changing hands for $189.49 on Thursday.
Virgin Money UK PLC (ASX: VUK)
A note out of Morgans reveals that its analysts have downgraded this UK-based bank's shares to a reduce rating with a lowered price target of $1.30. According to the note, the broker was underwhelmed by its third quarter update and notes that its net interest margin is under pressure. In light of this and the tough operating environment in the UK, it has downgraded its earnings forecasts for the medium term. The Virgin Money UK share price is currently fetching $1.64.
