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:
Adbri Ltd (ASX: ABC)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this building products company's shares to $2.20. Although Adbri delivered a better than expected half year result, the broker isn't in a hurry to change its rating. It notes that the company is facing structural issues and a very competitive market environment. The Adbri share price finished the day at $2.41.
Blackmores Limited (ASX: BKL)
Analysts at Credit Suisse have retained their underperform rating and $65.00 price target on this health supplements company's shares. According to the note, the broker has downgraded its earnings estimates to reflect the company's weakening outlook. It also appears underwhelmed by its FY 2020 result and notes that costs are growing quicker than revenue. The Blackmores share price last traded at $65.80.
Lovisa Holdings Ltd (ASX: LOV)
A note out of Citi reveals that its analysts have retained their sell rating but lifted the price target on this jewellery retailer's shares to $6.25. According to the note, the broker is concerned that Lovisa could be left behind by the shift to online shopping. This is because it traditionally relies heavily on foot traffic to drive its sales. It suspects that the company may have to increase its marketing spend to achieve the same level of sales per store in the future. The Lovisa share price ended the day at $7.35.
