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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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Macquarie, its analysts have retained their underperform rating but lifted their price target on this infant formula company's shares to $5.60. While Macquarie acknowledges that A2 Milk performed better than it was expecting during the first half of FY 2022, it isn't enough for a change of rating just yet. Particularly given that the company's improved revenue outlook is largely being offset by higher marketing costs. The A2 Milk share price was trading at $5.70 on Tuesday.
Altium Limited (ASX: ALU)
Another note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this electronic design software company's shares to $25.90. This follows the release of Altium's half year results, which were better than Macquarie was anticipating. However, the broker expects the company's growth to moderate in the second half. As a result, it isn't in a rush to change its rating. The Altium share price was fetching $31.43 today.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Credit Suisse have retained their underperform rating but increased their price target on this pizza chain operator's shares to $89.24. The broker has lifted its valuation after upgrading its growth estimates for the coming years. However, even after these upgrades, Credit Suisse believes Domino's shares are expensive on current multiples. The Domino's share price was trading at $99.73 on Tuesday afternoon.
