On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why:
AGL Energy Limited (ASX: AGL)
According to a note out of UBS, its analysts have retained their sell rating and $18.35 price target on this energy retailer's shares after it withdrew its takeover approach for Vocus Group Ltd (ASX: VOC). The broker believes AGL Energy is still interested in gaining exposure to the telco sector, but notes that alternatives are limited. This could mean the company has to return to seeking acquisitions in the energy sector to fuel its future growth. Outside this, the broker continues to see its shares as overvalued at the current level. AGL Energy's shares are down 0.25% to $19.84 on Tuesday.
Aurizon Holdings Ltd (ASX: AZJ)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $4.25 price target on this rail freight operator's shares following the release of its UT5 update. That update revealed that the company has submitted a customer DAAU that delivers significant regulatory reform and a range of benefits for both Aurizon and customers. Whilst Goldman sees positives in this, it notes that until it is approved it does not provide certainty. In the meantime, it feels the company's earnings outlook appears challenging due to its increasing reliance on share gains in a relatively closed competitive environment. The Aurizon share price has risen 1% to $5.39 this afternoon.
Cochlear Limited (ASX: COH)
Analysts at Deutsche Bank have held firm with their sell rating and $154.00 price target on this hearing solutions company's shares after it announced FDA approval of its new cochlear implant. According to the note, this came sooner than Deutsche expected and is a positive for the company, but not enough for it to budge on its recommendation. Deutsche has previously warned that it expects the company's FY 2019 result to be weak and feels its shares are expensive for its current growth profile. The Cochlear share price is up 0.5% to $203.08.
