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:
Flight Centre Travel Group Ltd (ASX: FLT)
According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this travel agent's shares to $18.31. The broker believes there are risks to near-term earnings that are not being factored in by investors. In addition, over the medium term Citi expects the shift online to slow its growth. So with Flight Centre's shares trading at 17x estimated FY 2024 earnings, the broker believes they have run ahead of fundamentals and are overvalued. The Flight Centre share price is trading at $21.28 on Tuesday afternoon.
Pro Medicus Limited (ASX: PME)
Another note out of Citi reveals that its analysts have initiated coverage on this health imaging technology company's shares with a sell rating and $45.00 price target. Citi believes that investors are being too optimistic on the company's future growth. Especially given the potential release of competing products down the line, which could squeeze the company's very generous 60%+ profit margins. The Pro Medicus share price is fetching $58.86 today.
REA Group Limited (ASX: REA)
Analysts at UBS have downgraded this property listings company's shares to a sell rating but increased their price target on them to $170.00. While the broker acknowledges that REA delivered a very strong first quarter result and has upgraded its earnings estimates to reflect this, it can't ignore its valuation. The broker believes REA's shares are expensive at the current level. Particularly given likely listings volatility and the potential for headwinds from Australia's next federal election and possible regulatory intervention. The REA share price is trading at $170.29 on Tuesday.
