On Monday I looked at three shares that leading brokers have named as buys this week.
Not all shares on the ASX are in favour right now, though. Three that have been given sell ratings are listed below, here's why brokers are bearish on them:
Altura Mining Ltd (ASX: AJM)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating and slashed the price target on the lithium miner's shares to 16 cents. Although the broker is a bit more upbeat on the industry after positive comments around demand from rival Pilbara Minerals Ltd (ASX: PLS), it remains bearish on Altura Mining and doesn't appear confident that it will be generating meaningful cash flows in the near term. The lithium miner's shares are changing hands for 17 cents today.
ASX Ltd (ASX: ASX)
Analysts at Credit Suisse have retained their underperform rating and $55.00 price target on the Australian stock exchange operator's shares. Although the broker notes that activity levels during the last quarter of calendar year 2018 were higher than it expected, it has retained its underperform rating on the belief that its earnings growth is slowing. In addition to this, at 25x trailing earnings, Credit Suisse believes that its shares are looking expensive now. The ASX share price is currently trading at $61.40.
Suncorp Group Ltd (ASX: SUN)
Another note out of the Macquarie equities desk reveals that its analysts have retained their sell rating and cut the price target on this insurance giant's shares to $12.75. Its analysts believe that Suncorp may have to downgrade its guidance as its return on equity target of 10% seems unlikely to be achieved now. Furthermore, following the recent Sydney hailstorms, it feels there is a risk that it could breach its FY 2019 aggregate reinsurance cover. This adds to the downside risk to its current forecasts. The Suncorp share price is trading at $12.23 at the time of writing.
