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:
AusNet Services Ltd (ASX: AST)
According to a note out of Morgans, its analysts have retained their reduce rating but lifted the price target on this utilities company's shares to $1.80. The broker expects the company to benefit from favourable changes to expensing of capital expenditures. It also notes that the draft decision for electricity distribution is pointing to stronger revenue allowance than previously anticipated. However, this isn't enough for a change of rating, with Morgans continuing to see its shares as overvalued at the current level. The AusNet share price is trading at $1.98 this afternoon.
Goodman Group (ASX: GMG)
Analysts at Goldman Sachs have retained their sell rating and lifted the price target on this property company's shares to $12.24. This follows the release of a trading update, which saw Goodman reaffirm its earnings per share growth guidance of 9% for FY 2021. It feels that the company's shares are expensive at ~29x forward earnings and thus has held firm with its sell rating. The Goodman share price is changing hands for $18.38 on Tuesday.
QBE Insurance Group Ltd (ASX: QBE)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $8.00 price target on this insurance giant's shares. The broker has been looking at updates from its peers and notes that pricing momentum remains very strong. But this is still not enough for Macquarie to change its mind on the company. Its main concern appears to be that large portions of its business are non-core and expects a group-wide review to be undertaken. The QBE share price is trading at $9.79 this afternoon.
