On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why they are bearish on them:
Air New Zealand Limited (ASX: AIZ)
According to a note out of Macquarie, its analysts have retained their underperform rating but lifted their price target on this airline operator's shares slightly to NZ$1.15 (~A$1.08). This follows news that New Zealand is opening its borders sooner than previously expected. While Macquarie acknowledges that this is a positive, it appears to believe it may be too soon to get excited. The broker expects it to take a bit of time before capacity rebounds and travel is booming again. The Air New Zealand share price is trading at $1.37 today.
Insurance Australia Group Ltd (ASX: IAG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $3.90 price target on this insurance giant's shares. Following the floods, the broker has concerns that IAG is at risk of elevated catastrophe budget increases in FY 2023. It suspects that this could further increase the cost of capital for the insurer. The IAG share price is fetching $4.58 on Thursday afternoon.
Seven West Media Ltd (ASX: SWM)
Analysts at Goldman Sachs have downgraded this media company's shares to a sell rating with a 60 cents price target. According to the note, the broker made the move on valuation grounds and due to its belief that Seven West Media will fall short of the market's earnings estimate in FY 2023 and FY 2024. It also sees less long term opportunities to offset total TV revenue declines than peers. The Seven West Media share price is trading at 63 cents on Thursday.
