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 Macquarie, its analysts have retained their underperform rating and cut their price target on this struggling infant formula company's shares to $5.20. This follows the release of its investor update yesterday. Macquarie notes that A2 Milk's medium term outlook is very weak. It also highlights that there is significant risk and uncertainty with management's growth targets. The A2 Milk share price is trading at $6.06 this afternoon.
Regis Resources Limited (ASX: RRL)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this gold miner's shares to $2.20. This follows the release of a quarterly update which revealed gold production well short of the expectations of both Goldman and the market. The broker notes that this was due to a number of issues at Duketon. In light of this, Goldman doesn't appear to be in a rush to change its rating despite recent share price weakness. The Regis Resources share price is fetching $2.03 today.
Woolworths Group Ltd (ASX: WOW)
Analysts at Credit Suisse have retained their underperform rating but lifted their price target on this retail giant's shares to $31.84. This follows the release of a solid first quarter update earlier this week. However, it isn't enough for a change of rating. The broker continues to believe Woolworths' shares are overvalued. The Woolworths share price is trading at $38.80 this afternoon.
