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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have retained their sell rating and $17.20 price target on this infant formula company's shares. Although it sees opportunities for the company to grow its market share in China significantly in the future, it has concerns over the resurgence of Chinese infant formula brands and regulatory risks in the lucrative market. In light of this and the premium its shares trade at, it is holding firm with its sell rating. The a2 Milk share price is trading lower than this price target at $16.54 this afternoon.
Platinum Asset Management Ltd (ASX: PTM)
Analysts at Goldman Sachs have retained their sell rating and $3.45 price target on this fund manager's shares. This follows the release of its latest funds under management update earlier this week. Although its performance is tracking ahead of Goldman's expectations, it isn't enough for a change of rating just yet. The broker continues to see greater risks to its flows compared to other companies under coverage. The Platinum share price is changing hands for $3.34 today.
SKYCITY Entertainment Group Limited (ASX: SKC)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted the price target on this casino and resorts operator's shares to NZ$2.90 (A$2.67). According to the note, the broker has concerns over SKYCITY's Australian business and expects it to underperform. In light of this and its current valuation, it has held firm with its underweight rating for now. The SKYCITY share price is trading a touch higher than this price target at $2.74 this afternoon.
