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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Afterpay Ltd (ASX: APT)
According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company's shares to $36.00. This follows the release of Afterpay's half year results and $1.25 billion capital raising. UBS continues to believe that its shares are vastly overvalued and sees no reason to change its rating. Though, it acknowledges that the market is unlikely to see things the same way in the near term. The Afterpay share price is trading notably higher than this price target at $125.69 this afternoon.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Citi reveals that its analysts have retained their sell rating but increased their price target on this pizza chain operator's shares to $72.40. While the broker acknowledges that there's a lot to like with Domino's, it feels its valuation is stretched after a strong gain over the last 12 months. This could put a lot of pressure on its shares if its growth stutters. The Domino's share price is trading at $90.26 this afternoon.
Orocobre Limited (ASX: ORE)
Analysts at Macquarie have retained their underperform rating but lifted their price target on this lithium producer's shares to $2.90. This follows a larger than expected first half loss. Furthermore, with a lot of its offtake already contracted, it feels Orocobre won't benefit fully from price increases until FY 2022. That's if lithium prices hold firm until then. The Orocobre share price is fetching $4.67 on Tuesday afternoon.
