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 they are bearish on them:
Coca-Cola Amatil Ltd (ASX: CCL)
According to a note out of Goldman Sachs, its analysts have retained their sell rating but lifted the price target on this beverage company's shares to $9.90. Although the broker came away from Coca-Cola Amatil's investor day feeling a little more optimistic, it wasn't enough for it to change its rating. The broker continues to believe that its shares are expensive given its current growth profile. Its shares are currently changing hands at ~22x FY 2019 earnings based on Goldman's forecasts. The Coca-Cola Amatil share price is up at $11.53 on Tuesday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
A note out of Morgans reveals that its analysts have downgraded this pizza chain operator's shares to a reduce rating from hold and cut the price target on them to $45.23. The broker made the move due to the slowing of like-for-like sales growth and on valuation grounds after a strong share price rally. Prior to today, the Domino's share price was up 39% since the start of August. The Domino's share price is down 2% to $51.38 on Tuesday.
Star Entertainment Group Ltd (ASX: SGR)
Analysts at Citi have commenced coverage on this casino and resorts operator's shares with a sell rating and $4.30 price target. According to the note, the broker has concerns over the local casino industry. And while it acknowledges that tax cuts and housing market improvements could give the industry a boost, it notes that the VIP market remains challenging. The Star Entertainment share price is down 0.5% to $4.71 today.
