On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week.
On the flip side, today we look at a few shares that have just been given sell ratings by brokers. Here’s why they are bearish on these ASX shares:
AMP Ltd (ASX: AMP)
According to a note out of UBS, its analysts have retained their sell rating and cut their price target on this financial services company’s shares to 90 cents. The broker made the move after taking into account the company’s demerger plans. UBS isn’t positive on PrivateMarketsCo’s outlook nor that of the core AMP business. Overall, the broker doesn’t believe the demerger will unlock any near-term value for shareholders. The AMP share price is trading at 95 cents on Thursday afternoon.
GrainCorp Ltd (ASX: GNC)
A note out of Bell Potter reveals that its analysts have downgraded this grain exporter’s shares to a sell rating with a $6.15 price target. The broker believes GrainCorp will benefit greatly in FY 2022 due to two of the largest East coast crops and Northern hemisphere crop failures which have elevated canola crush and marketing returns. However, Bell Potter doesn’t expect this to last and is forecasting a ~50% decline in profits in FY 2023 when conditions normalise. In light of this, it feels is shares are overvalued at the current level. The GrainCorp share price is fetching $6.79 today.
Qantas Airways Limited (ASX: QAN)
Analysts at Credit Suisse have retained their underperform rating and $4.10 price target on this airline operator’s shares. The broker suspects that Qantas could now report a greater than expected loss in FY 2022 of ~$1.6 billion. This is due to the emergence of the omicron variant and the prospect of the international travel recovery being delayed. The Qantas share price is trading at $4.91 on Thursday.