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:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $58.71 price target on this pizza chain operator's shares. This follows the company's investor day event. Although it took away a number of positives from the event, such as store growth plans and strong operating leverage potential, it still appears concerned over its valuation. And with nothing on the horizon with the potential to support a re-rating, Credit Suisse is sticking with its underperform rating. The Domino's share price is up 12.5% to $83.36 this afternoon.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Citi have downgraded this wine company's shares to a sell rating and cut the price target on them to $8.20. According to the note, the broker is expecting Chinese tariffs to have a significant impact on Treasury Wine's earnings in the near term. In addition to this, it has concerns over the excess supply of its wine after effectively being shut out of the lucrative market. The Treasury Wine share price is fetching $8.41 on Tuesday.
Virgin Money UK CDI (ASX: VUK)
A note out of Morgans reveals that its analysts have retained their reduce rating but lifted the price target on this UK-based bank's shares to $2.00. Morgans notes that Virgin Money UK fell short of its expectations in FY 2020 due to its higher than expected impairments. However, the prospect of a working COVID-19 vaccine being released in the near future has led to the broker lowering its impairment estimates and boosting its earnings estimates. Though, not enough for a change of rating. Morgans still believes its valuation is looking stretched. The Virgin Money UK share price is trading at $2.40 this afternoon.
