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:
GPT Group (ASX: GPT)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this property company’s shares to $4.00. This follows the release of a softer than expected first half result on Monday. In addition to this, the broker notes that GPT doesn’t expect to recover the majority of its uncollected rent. The GPT share price is currently trading below this price target at $3.92.
Medibank Private Ltd (ASX: MPL)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $2.83 price target on this private health insurer’s shares. This follows the release of an update from rival BUPA. It notes that BUPA’s ANZ business delivered a 4% increase in first half revenue but a 35% decline in underlying profit. BUPA also advised that it faces challenges in its Australian Health Insurance business. This is particularly the case with affordability issues. Goldman appears to see this as a sign that Medibank will continue to underperform. The Medibank share price is changing hands for $2.85.
Sonic Healthcare Limited (ASX: SHL)
Analysts at UBS have retained their sell rating and $28.00 price target on this global medical diagnostics company’s shares. According to the note, the broker expects Sonic to deliver a 10% increase in revenue but a 7% decline in earnings in FY 2020. In light of this, it believes its shares are overvalued at the current level and retains its sell rating. The Sonic share price is trading at $33.96 this afternoon.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare Limited. 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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