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:
ASX Ltd (ASX: ASX)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this stock exchange operator’s shares to $67.90. The broker has reduced its earnings estimates on the belief that the company will have to increase its operating expenses to ensure the stability of its trading systems. Particularly given the company’s plan to replace the CHESS distributed ledger in the coming years. In addition to this, lower interest rates are expected to weigh on its margins slightly. The ASX share price is fetching $81.75 this afternoon.
St Barbara Ltd (ASX: SBM)
A note out of Macquarie reveals that its analysts have retained their underperform rating and cut the price target on this gold miner’s shares to $2.30. According to the note, the broker has reduced its earnings estimates after downgrading its gold price forecasts for the coming years. It believes improvements in 10-year U.S. bond yields will put pressure on the precious metal. The St Barbara share price is trading at $2.58 on Thursday.
United Malt Group Ltd (ASX: UMG)
Analysts at Credit Suisse have downgraded this commercial maltster’s shares to an underperform rating but lifted the price target on them to $4.23. This follows the release of its FY 2020 results this week. Although that result was ahead of its expectations, it notes that this was partly due to government assistance and temporary cost reductions. Something which may not be repeated in FY 2021. Credit Suisse also appears to have concerns over a contraction in the craft brewing market. The United Malt share price is changing hands for $4.59 this afternoon.
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*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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