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:
Beach Energy Ltd (ASX: BPT)
According to a note out of Goldman Sachs, its analysts have downgraded this energy company’s shares to a sell rating and cut the price target on them to $1.55. Goldman made the move after Beach Energy’s half year update fell short of its expectations. In addition, the broker has concerns about east coast gas repricing risks and higher expected capital intensity for the Western Flank. This has led to Goldman cutting its earnings estimates. The Beach share price is trading at $1.64 today.
Bendigo and Adelaide Bank Ltd (ASX: BEN)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this regional bank’s shares to $9.90. According to the note, Bendigo and Adelaide Bank delivered a decent half year result this week. It was pleased with its growth and operating leverage, which appears to show that it is over the worst of its troubles now. However, it still feels its shares are overvalued at the current level and sees more value in other banks. The Bendigo and Adelaide Bank share price is trading at $11.26 today.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Citi have retained their sell rating and $8.20 price target on this wine company’s shares ahead of its half year results. According to the note, while the broker expects Treasury Wine to outperform the market’s expectations in the first half, it doesn’t believe this will be the case in the second half. The broker suspects it could cost the company more than the market expects to reallocate the wine that would’ve been sold in the China market. The Treasury Wine share price is fetching $9.78 today.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.