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:
Bank of Queensland Limited (ASX: BOQ)
According to a note out of Citi, its analysts have retained their sell rating and cut the price target on this regional bank's shares to $7.75. The broker notes that Bank of Queensland has cut its dividend and is raising $275 million to strengthen its balance sheet. Furthermore, another soft result is forecast for FY 2020, which could weigh on investor sentiment in the near term. The broker appears to see no reason to change to a more positive rating and will now wait for its strategy update early next year. The Bank of Queensland share price is trading at $7.85 on Thursday.
Harvey Norman Holdings Limited (ASX: HVN)
Analysts at Morgan Stanley have retained their underperform rating and $3.20 price target on this retailer's shares. According to the note, the broker appears to believe that Harvey Norman's sales update demonstrates weaker demand in Australia. It suspects there has been a slowdown in sales growth over September and October. Which isn't great going into the key Christmas trading period. The Harvey Norman share price is changing hands notably higher than this price target at $4.30 today.
Netwealth Group Ltd (ASX: NWL)
A note out of UBS reveals that its analysts have retained their sell rating and $7.50 price target on this investment platform provider's shares. According to the note, the broker notes that Netwealth is benefiting from disruption to specialty platform providers. However, it feels competition is increasing and fears that platform fees could come under pressure over the medium term. This could have a very negative impact on its margins in the coming years. The Netwealth share price is trading at $8.80 this afternoon.
