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:
Image source: Getty Images
Computershare Limited (ASX: CPU)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $11.00 price target on this share registry company's shares. The broker notes that Computershare has reaffirmed its guidance for a 20% decline in management earnings per share. While this is being seen as a positive, it still has concerns over falling margin income over the next couple of years due to low interest rates. The Computershare share price is trading at $12.79 today.
TechnologyOne Ltd (ASX: TNE)
Analysts at UBS have downgraded this enterprise software company's shares to a sell rating with an increased price target of $8.20. The broker has been looking through TechnologyOne's half year update and notes that its revenue fell a touch short of its expectations. This may make it difficult for it to deliver on its full year expectations. Outside this, the broker has concerns over its lofty valuation. Prior to today, its shares were trading at 51x estimated full year earnings. At the time of writing they are changing hands for $9.70.
Treasury Wine Estates Ltd (ASX: TWE)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on this wine company's shares slightly to $9.60. The broker notes that other wine producers have seen an uptick in demand in China recently. While this is a positive, it does have concerns that Treasury Wine Estates could be hit with tariffs given the frosty Australia-China relationship. The company's shares are trading at $9.82 this afternoon.
