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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
According to a note out of Citi, its analysts have retained their sell rating and $28.00 price target on this banking giant's shares ahead of its full year results. The broker believes that ANZ will deliver a result a touch short of the market's expectations in FY 2021 due to lower markets income. In light of this, it sees no reason to change its rating at this point. The ANZ share price is trading at $28.46 this afternoon.
Woolworths Group Ltd (ASX: WOW)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this retail giant's shares slightly to $31.40. The broker has downgraded its earnings estimates for Woolworths' key Australian Food business to reflect its belief that labour and supply chain costs are rising quicker than product prices. The Woolworths share price is trading notably higher than this price target at $40.55 on Tuesday.
Zip Co Ltd (ASX: Z1P)
Analysts at UBS have retained their sell rating and $5.40 price target on this buy now pay later (BNPL) provider's shares. UBS notes that the Reserve Bank is planning to remove the no surcharge rule from the BNPL market. This would allow merchants to charge consumers more to cover the costs of paying by the BNPL payment method. The broker sees this as an incremental negative for Zip. The Zip share price is fetching $6.86 this afternoon.
