On Wednesday I looked at three ASX shares that 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 them:
Coles Group Ltd (ASX: COL)
According to a note out of UBS, its analysts have retained their sell rating but lifted the price target on this supermarket giant's shares to $12.30 following its strategy update earlier this week. Although the broker was pleased with its comparable sales growth and its $1 billion cumulative cost reduction target, it wasn't enough to make a change to its recommendation. UBS continues to see near-term risks to its earnings. The Coles share price is up 1% to $13.92 on Thursday.
GPT Group (ASX: GPT)
Analysts at Citi have retained their sell rating but lifted the price target on this property investment company's shares to $5.73 after it announced a fully underwritten $800 million capital raising to fund the acquisition of a 25% interest in the Darling Park 1 & 2 office complex and Cockle Bay Wharf. According to the note, the broker continues to believe its shares are overvalued, especially given its material exposure to retail property which is facing significant headwinds. The GPT Group share price is down 2% to $6.21 today.
Link Administration Holdings Ltd (ASX: LNK)
A note out of Deutsche Bank reveals that its analysts have retained their sell rating and $5.30 price target on this administration company's shares after its recent update. Although the broker notes that Link reiterated its operating earnings guidance, it believes its outlook for FY 2020 remains challenging given client losses and account consolidation headwinds. In addition to this, it has concerns over the negative impact of Brexit on its business. The Link share price is down 1% to $5.34 on Thursday afternoon.
