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 listed below have all been given sell ratings this week. Here's why:
AGL Energy Limited (ASX: AGL)
According to a note out of Morgans, its analysts have retained their reduce rating but increased the price target on the energy company's shares to $18.02. Although Morgans acknowledges that the dividend yield on offer at the moment is attractive, it has concerns over its outlook due to price pressures in the electricity market. Its analysts expect earnings to decline upwards of 10% in FY 2020 due to these issues.
Perpetual Limited (ASX: PPT)
Analysts at UBS have retained their sell rating and $32.85 price target on this fund manager's shares ahead of its half year results release in a couple of weeks. UBS has previously expressed concerns over the performance of its core funds management business and the impact that its poor investment performance could have on outflows and revenue. In light of this, the broker will be looking for management to reveal strategic responses that address this when its results are released.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A note out of Credit Suisse reveals that its analysts have downgraded this airport operator's shares to an underperform rating from neutral and slashed the price target on them by almost 6% to $6.40. According to the note, the broker made the move after revising its estimates lower following recent developments in the airline industry. It has predicted that international and domestic passenger growth will flatline in 2019 due to airlines cutting capacity and lower demand. Credit Suisse expects this to put pressure on the airport's earnings and dividend.
