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 ASX shares that have just been given sell ratings by brokers are listed below.
Here's why these brokers are bearish on them:
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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have downgraded this infant formula company's shares to a sell rating with a $17.20 price target. The broker made the move following the release of its full year results on Wednesday. Citi appears concerned that a2 Milk Company's growth has peaked due to a structural decline in the daigou channel and the resurgence of Chinese infant formula brands. And while it notes that it has opportunities to accelerate its growth through acquisitions, it isn't enough for it to remain positive on the company. The a2 Milk share price is changing hands for $18.24 this afternoon.
InvoCare Limited (ASX: IVC)
A note out of the Macquarie desk reveals that its analysts have retained their underperform rating and cut the price target on this funeral company's shares to $9.00. This follows the release of a half year result which fell well short of the broker's expectations. The broker expects COVID-19 headwinds to continue into the second half and FY 2021. As a result, it has downgraded its near term estimates. In light of this, it doesn't expect its shares to rerate to higher multiples any time soon. InvoCare shares are fetching $9.78 on Thursday.
Webjet Limited (ASX: WEB)
Analysts at Morgan Stanley have retained their underweight rating and $3.30 price target on this online travel agent's shares following its full year results. The broker believes that Webjet's recovery will take some time following commentary from management. In light of this, it doesn't appear to see any reason to start buying its shares any time soon. It feels others in the travel sector are better positioned to recover quicker. The Webjet share price is changing hands at $3.24 this afternoon.
