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:
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted the price target on this pizza chain operator's shares to $61.32. Although the broker has upgraded its estimates to account for strong like for like sales growth in FY 2021, it isn't enough for a change in its rating. Credit Suisse believes the company's shares are overvalued at the current level. The Domino's share price is trading at $81.31.
HUB24 Ltd (ASX: HUB)
Another note out of Credit Suisse reveals that its analysts have downgraded this investment platform provider's shares to an underperform rating with a $16.30 price target. While HUB24 is performing well and benefiting from industry tailwinds, the broker believes this is more than priced into its current share price. Furthermore, the broker appears concerned that its margins could be squeezed if the RBA cuts rates again. The HUB24 share price is changing hands for $18.01 this afternoon.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Analysts at Morgan Stanley have downgraded this plumbing parts company's shares to an underweight rating with an improved price target of $4.00. Morgan Stanley notes that Reliance has started FY 2021 very strongly. However, it doesn't believe investors should get carried away and warned that this strong growth is unlikely to persist. In light of this, it feels its shares are overvalued at the current level. The Reliance Worldwide share price is trading at $4.26 on Tuesday afternoon.
