Yesterday I looked at three ASX shares 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 retained their sell rating and $6.05 price target on this infant formula company's shares. Although the broker acknowledges that China's new three-child policy will be a positive for the infant formula market, it doesn't believe investors should get overly excited. This is because it believes the birth increases are likely to be occurring in lower tier cities. These are areas that Chinese infant formula producers generally have stronger market positions. The A2 Milk share price is fetching $6.93 on Thursday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Macquarie reveals that its analysts have downgraded this pizza chain operator's shares to an underperform rating and cut the price target on them to $103.50. The broker made the move amid concerns over its current valuation and the prospect of a softer than expected performance in FY 2022. And while Macquarie remains positive on the long term, it isn't enough for it to retain its neutral rating. The Domino's share price is trading at $117.06 this afternoon.
Zip Co Ltd (ASX: Z1P)
Analysts at UBS have retained their sell rating and $5.60 price target on this buy now pay later provider's shares following a quick review of its fourth quarter update. According to the note, UBS was disappointed with the update, noting that it fell short of expectations in both the ANZ and US markets. The Zip share price is falling heavily on Thursday and fetching $7.05 at the time of writing.
