On Monday 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 these ASX 200 shares:
Costa Group Holdings Ltd (ASX: CGC)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this horticulture company's shares to $2.87. The broker felt that Costa's annual general meeting update last week was reasonably mixed. And while there were positives in respect to demand and pricing, it wasn't enough to warrant a change in rating by the broker. The Costa share price is trading at $3.15 this afternoon.
Lovisa Holdings Ltd (ASX: LOV)
Analysts at Citi have downgraded this jewellery retailer's shares to a sell rating and cut the price target on them to $5.85. According to the note, the broker believes the recovery in the Lovisa share price over the last couple of months has been overdone. Especially as it believes Lovisa could fall short of consensus earnings estimates over the medium term. This is due to changing consumer preferences, lower shopping centre traffic, and a slowdown in its store network expansion. Lovisa shares are changing hands at $7.80 on Tuesday.
Vicinity Centres (ASX: VCX)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $1.25 price target on this shopping centre operator's shares. This follows the company's announcement of a $1.2 billion placement and the cancellation of its final dividend. Outside this, it fears that Vicinity's rent rates will fall heavily due to the pandemic and weigh on its income. The Vicinity share price is trading at $1.55 this afternoon.
