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:
Bank of Queensland Limited (ASX: BOQ)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this regional bank's shares to an underperform rating with an improved price target of $6.00. Although the broker was reasonably pleased with its FY 2020 result, it remains cautious on its outlook and suspects that growth will remain subdued. In light of this and its strong recent share price gains, it doesn't see value in its shares at the current level. The Bank of Queensland share price is trading at $6.91 this afternoon.
Ramsay Health Care Limited (ASX: RHC)
Analysts at Morgan Stanley have retained their underweight rating and $61.00 price target on this private hospital operator's shares. This follows the announcement of an updated agreement with the UK's NHS, which it feels could impact its earnings in the country. Outside this, the broker has concerns over industry pressures. It also suspects that affordability issues for private health insurance could increase due to higher unemployment. The Ramsay share price is trading at $67.81 on Thursday.
Zip Co Ltd (ASX: Z1P)
Another note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted their price target on this buy now pay later provider's shares to $4.95. This follows the release of a first quarter update which was largely in line with Macquarie's expectations. The broker notes that the current quarter is hugely important. And while it expects the growth of its US-based QuadPay business to accelerate, a lot will depend on PayPal's launch of its competing product. If PayPal's BNPL product is a success, it fears it could have a big impact on QuadPay's future growth rates. The Zip share price is down 6.5% to $7.08 this afternoon.
