Yesterday we 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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
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DEXUS Property Group (ASX: DXS)
According to a note out of Citi, its analysts have retained their sell rating and $9.54 price target on this property company's shares. The broker notes that a number of the company's peers have recently announced strong updates. While this is likely to bode well for Dexus' own performance, Citi isn't in a rush to change its rating. The broker has previously flagged potential for further weakness in office rental markets, which it feels is likely to feed into office asset pricing. The Dexus share price is trading at $11.44 this afternoon.
Insurance Australia Group Ltd (ASX: IAG)
A note out of UBS reveals that its analysts have downgraded this insurance giant's shares to a sell rating and cut the price target on them to $4.20. UBS is feeling bearish on the company's outlook, particularly given its lack of growth opportunities. In addition, the broker expects IAG to be impacted by a spike in claims. The IAG share price is fetching $4.36 on Tuesday.
Pact Group Holdings Ltd (ASX: PGH)
Analysts at Morgan Stanley have retained their underweight rating on this packaging company's shares and cut the price target on them to $2.70. According to the note, Pact is the broker's least preferred option in the space due to partly to its struggling Contract Manufacturing segment. It expects this business to weigh on its performance and has downgraded its earnings forecasts to reflect this. The Pact share price is trading at $2.44 today.
