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:
Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating and $28.25 price target on this payments company's shares. This follows the announcement of a partnership with Westpac Banking Corp (ASX: WBC) that will see Afterpay offer savings accounts and cash flow tools. While the broker expects this to support customer retention and transaction frequency, it doesn't believe the impact on its earnings to be overly material. In light of this, it retains its sell rating and lowly price target. The Afterpay share price is trading at $100.71 this afternoon.
DEXUS Property Group (ASX: DXS)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $8.15 price target on this property company's shares following its first quarter update. Although the update revealed distribution guidance ahead of the broker's expectations, it hasn't been enough for its to change its rating. It continues to see tough times ahead of DEXUS due to rising unemployment, lower occupancy rates, and potential rental declines. The DEXUS share price is changing hands for $9.35 on Thursday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Citi have retained their sell rating but lifted their price target on this pizza chain operator's shares to $67.40. According to the note, the broker believes Domino's is well-placed for growth in the current environment. It also suspects that a new geographic expansion could be coming. Possibly into South Korea or Poland. However, it feels this is more than priced into its current share price. As a result, it stays firm with its sell rating. The Domino's share price is fetching $87.57 today.
