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:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $1.50 price target on this lithium miner's shares. This follows Galaxy's announcement that it plans to push ahead with the basic engineering phase of its James Bay project in North America. The results of the Preliminary Economic Assessment were in line with what the broker was expecting. As such, no changes have been made to its recommendation at this point. It holds firm with its underweight rating for valuation reasons. The Galaxy share price is fetching $2.31 this afternoon.
Treasury Wine Estates Ltd (ASX: TWE)
Analysts at Citi have retained their sell rating and $9.30 price target on this wine company's shares following its update on its Americas strategy. While the broker sees a lot of positives on its premiumisation strategy in the region, it isn't enough for a change in its rating. Especially given how its restructuring still has long way to go. The Treasury Wine share price is trading at $11.49 on Thursday.
Zip Co Ltd (ASX: Z1P)
A note out of UBS reveals that its analysts have downgraded this buy now pay later provider's shares to a sell rating with an improved price target of $6.40. According to the note, the broker was pleased with its strong growth during the first half. It also appears to believe more of the same is coming in the near term. However, it does have concerns by rising bond yields. This is due to the impact they could have on funding and its valuation. The Zip share price is fetching $8.42 on Thursday afternoon.
