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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Cochlear Limited (ASX: COH)
According to a note out of UBS, its analysts have retained their sell rating and $185.00 price target on this hearing solutions company's shares. The broker acknowledges that clinics have adapted to the pandemic and expects the loss of deferred surgeries to be minimal. Furthermore, thanks to a recall from a key competitor, it believes Cochlear is winning market share. However, it still feels its shares are expensive and thus sees no reason to change its rating any time soon. The Cochlear share price is fetching $203.81 this afternoon.
Oil Search Ltd (ASX: OSH)
A note out of Macquarie reveals that its analysts have retained their underperform rating but lifted the price target on this energy producer's shares to $4.10. According to the note, the broker has lifted its estimates to reflect higher oil prices thanks to OPEC holding firm with its production cuts. But it isn't enough for the broker to become positive on Oil Search. It still doesn't see value in its shares at the current level. The Oil Search share price is trading at $4.51 on Tuesday.
Virtus Health Ltd (ASX: VRT)
Analysts at Morgan Stanley have retained their underweight rating and lifted the price target on this fertility treatment company's shares to $5.05. According to the note, the broker has been pleased with the strength of the IVF market, noting that Virtus Health reported strong fresh cycle growth during the first half. However, it appears concerned that government stimulus is propping this up and is waiting to see what happens when it stops. The Virtus Health share price is trading at $5.89 this afternoon.
