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:
Cochlear Limited (ASX: COH)
According to a note out of UBS, its analysts have retained their sell rating and $175.00 price target on this hearing solutions company's shares. The broker believes that meaningful margin expansion is unlikely for Cochlear over the 2020s due to partly to its product mix. In addition to this, UBS has previously suggested the market may be expecting too much from Cochlear in respect to its sales growth in the coming years. As a result, it doesn't appear to believe it should be trading on such high multiples. The Cochlear share price is fetching $202.82 this afternoon.
DEXUS Property Group (ASX: DXS)
Analysts at Morgan Stanley have retained their underweight rating and $8.15 price target on this property company's shares. According to the note, the broker has concerns that DEXUS' near term performance could suffer from higher unemployment, rising vacancies, and lower rents. It has suggested investors keep their powder dry and wait for things to stabilise before considering an investment. The DEXUS share price is trading at $8.74 on Thursday.
New Hope Corporation Limited (ASX: NHC)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this coal miner's shares down to 90 cents. This follows the release of a full year result that fell well short of the broker's expectations. Unfortunately, Macquarie doesn't appear confident that there will be a meaningful improvement in New Hope's performance in the near term due to weak thermal coal prices. The New Hope share price is changing hands for $1.21 this afternoon.
