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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Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $70.71 price target on this pizza chain operator's shares. This follows news that the company is acquiring Domino's Taiwan for $79 million. While the broker notes that there are opportunities to expand its store network significantly in the market, it isn't enough for a change of rating. It continues to believe that Domino's shares are overvalued. The Domino's share price is fetching $118.46.
IGO Ltd (ASX: IGO)
A note out of Morgan Stanley reveals that its analysts have downgraded this clean energy company's shares to an underweight rating but increased the price target on them to $6.35. The broker has been pleased with IGO's shift to a clean energy company, however, it believes the market is overvaluing its assets. In response to this, the broker has downgraded its shares today. The IGO share price is trading at $7.39.
Premier Investments Limited (ASX: PMV)
Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate's shares to $21.10. This follows the release of a trading update last week which revealed that its strong growth has continued since its last update. While Goldman has been impressed with its stronger than expected performance, it is expecting a sharp earnings decline next year. In light of this, it feels that its shares are still overvalued at the current level. The Premier Investments share price is trading at $28.70 today.
