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:
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Appen Ltd (ASX: APX)
According to a note out of Macquarie, its analysts have retained their underperform rating and cut the price target on this artificial intelligence data services company's shares to $16.00. This follows the release of its FY 2020 results, which fell short of expectations. In addition, while not surprised, its guidance for FY 2021 was softer than Macquarie anticipated. It now has fears that pricing pressures could impact its earnings further over the next 12 months. The Appen share price is fetching $16.94 today.
Blackmores Limited (ASX: BKL)
Analysts at Citi have retained their sell rating and trimmed the price target on this health supplements company's shares to $59.20. This follows the release of its half year results earlier this week. According to the note, Citi wasn't surprised to see its revenue decline in the local market. Particularly given tough trading conditions in the daigou market and a mild flu season. However, it believes that increased competition in the market is and will continue weighing on its performance. The Blackmores share price is trading at $81.19 on Thursday.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.20 price target on this fund manager's shares. Although Platinum outperformed the broker's estimates in the first half, it wasn't enough for a change of rating. Particularly given how none of its channels achieved positive inflows during the period. The Platinum share price is trading at $5.00 this afternoon.
