Earlier today 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:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Citi have retained their sell rating but lifted their price target on this pizza chain operator's shares to $49.80. According to the note, contrary to popular opinion, the broker believes Domino's actually had a soft first half and its EBITDA growth was inflated by asset sales and foreign exchange movements. In light of this, it doesn't believe the recent re-rating of its shares has been justified with this result. This bearish view hasn't stopped the Domino's share price from charging higher. On Thursday it hit a multi-year high of $65.24.
Tabcorp Holdings Limited (ASX: TAH)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut the price target on this gambling company's shares to $4.25. Goldman thought that Tabcorp's first half was mixed and remains concerned with its struggling Wagering and Services business. Whilst the Lotteries business is performing very well, it notes that the outlook for the Wagering and Services remains tough and could weigh on its performance. The Tabcorp share price is currently changing hands at $4.27.
Westpac Banking Corp (ASX: WBC)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and trimmed the price target on this banking giant's shares to $23.60. The broker believes that Westpac is now in a downgrade cycle amid lower revenues and increasing costs. It also has concerns over its balance sheet strength and feels there are risks of another cut to its dividend. The Westpac share price climbed slightly higher to $25.69 on Thursday.
