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:
Appen Ltd (ASX: APX)
According to a note out of Macquarie, its analysts have downgraded this artificial intelligence services company's shares to an underperform rating and slashed the price target on them to $19.00. The broker is concerned that increased competition is leading to a structural loss of market share. It also fears that as competition intensifies, pricing could become a lever to differentiate between solutions. As a result, it suspects that there is downside risk to consensus estimates. The Appen share price is trading at $21.94 on Thursday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this pizza chain operator's shares to $71.11. According to the note, the broker was impressed with Domino's first half result and notes that its outlook was very positive. However, it believes this is being underpinned by COVID tailwinds, which will only be temporary. In light of this, it appears to believe that too much growth is being priced into its shares. The Domino's share price is fetching $111.08 today.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this wine company's shares to $8.60 following its first half results. According to the note, while Treasury Wine posted a sizeable profit decline, it was better than it feared. Nevertheless, Citi believes the medium term will be difficult and suspects the market may be expecting too much from the company. Especially given the uncertainty around the reallocation of product meant for the China market. The Treasury Wine share price is trading at $11.82 on Thursday.
