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:
Australian Pharmaceutical Industries Ltd (ASX: API)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this pharmacy chain operator and distributor's shares to $1.25. The broker notes that the company behind the Priceline brand expects to deliver a decline in first half profits next month. This is due to challenging trading conditions that are impacting its performance. Credit Suisse doesn't appear confident that things will improve in the second half. The Australian Pharmaceutical Industries share price is down 2.5% to $1.32 on Thursday.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Analysts at Citi have downgraded this pizza chain operator's shares to a sell rating with an improved price target of $48.60. According to the note, the broker isn't confident that Domino's will deliver strong enough store growth to justify the premium its shares are trading at. It notes that its store growth so far in FY 2020 has been soft. Domino's shares are down around 1% to $55.30 in afternoon trade.
Regis Resources Limited (ASX: RRL)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this gold miner's shares to an underperform rating and cut the price target on them to $4.20. According to the note, Regis Resources' production in the December quarter was ahead of Macquarie's expectations. However, delays to the McPhillamys development have led to the broker reducing its project valuation and ultimately its rating for Regis Resources. The gold miner's shares have fallen a sizeable 5.5% to $4.38 on Thursday.
