Yesterday I looked at three ASX shares 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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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company's shares. Its analysts believes the market could be mispricing the company's shares. Credit Suisse feels that the earnings multiples the company's shares trade on should be for growth companies in growth sectors. And given how the Chinese infant formula market is maturing, it doesn't think the latter is the case. The A2 Milk share price is trading at $7.11 this afternoon.
Cochlear Limited (ASX: COH)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $197.00 price target on this hearing solutions company's shares. The broker notes that while increasing vaccination rates are a positive for trading conditions, implant surgeries are highly elective. In light of this, it feels it is possible there is some persistent hesitancy amongst a proportion of its target market in the 70+ demographics. Overall, the broker sees better value for money elsewhere for investors. The Cochlear share price is fetching $221.48 today.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another note out of Credit Suisse reveals that its analysts have retained their underperform rating and $82.28 price target on this pizza chain operator's shares. This follows the release of an update on its European business. While the broker sees significant store growth potential and scale benefits, it continues to believe its shares are overvalued at the current level. As such, it isn't in a rush to change its rating. The Domino's share price is trading at $134.25 on Thursday.
