On Monday I looked at three ASX shares have been given buy ratings by brokers this week.
Not all shares have been fortunate enough to have the coveted buy rating placed on them, though.
The three shares below have all been given sell ratings this week. Here's why:
Harvey Norman Holdings Limited (ASX: HVN)
According to a note out of Goldman Sachs, it has retained its sell rating and $2.70 price target on this retailer's shares. After looking into the retail industry over the Christmas period, the broker has found positive trends across technology categories but further weakness in whitegoods. Although this led to Goldman increasing its full year net profit after tax estimate for Harvey Norman, its estimate of $338.6 million still implies a disappointing 9.4% decline on FY 2018's result.
Medibank Private Ltd (ASX: MPL)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and cut the price target on this private health insurer's shares to $2.15. According to the note, with a Labor win looking more than likely at the next election, the broker believes that investors should prepare for a 2% cap on premium increases for private health insurers in 2020 and 2021. This could make earnings growth hard to come by in the near term for Medibank. In addition to this, the broker believes the loss of the ADF contract was a major blow for the company and its aim of doubling its non-insurance earnings.
Sims Metal Management Ltd (ASX: SGM)
Analysts at UBS have downgraded this scrap metal company's shares to a sell rating from neutral and slashed the price target on them from $12.50 to $8.50 following yesterday profit downgrade. According to the note, the broker has reduced its price target after cutting its forecasts to account for the tough trading conditions Sims Metal Management is facing. And with global scrap metal markets facing increasing disruption, the broker remains cautious on the company's prospects in the medium term.
