On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:
AGL Energy Limited (ASX: AGL)
According to a note out of Citi, its analysts have retained their sell rating and cut the price target on this energy company's shares to $16.28. The broker continues to be bearish on AGL Energy due to concerns over a potential deterioration in its earnings. It believes operational headwinds give it a very challenging outlook and will put pressure on its dividend over the coming years. The AGL Energy share price is up 0.5% to $19.06 this afternoon.
Newcrest Mining Limited (ASX: NCM)
Analysts at UBS have retained their sell rating but lifted the price target on this gold miner's shares to $32.00. According to the note, UBS expects the company's production and earnings to peak in FY 2020 as grades decline at its key Cadia operation. And while its cash flow will be redeployed to other assets, the broker remains cautious on its outlook at this stage. The Newcrest share price is down slightly to $34.01 on Thursday.
Spark New Zealand Ltd (ASX: SPK)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and NZ$4.00 (A$3.74) price target on this New Zealand-based telco company's shares. According to the note, the broker believes its shares are overvalued given its current growth profile and sees better options for investors elsewhere in the telco sector. Goldman prefers Telstra Corporation Ltd (ASX: TLS) and added the telco giant to its conviction list today. Spark's shares are up 2% to A$4.24 on Thursday.
