On Monday I looked at three ASX shares 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 these ASX shares:
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Centuria Office REIT (ASX: COF)
According to a note out of UBS, its analysts have downgraded this property company's shares to a sell rating with a $2.25 price target. The broker made the move on the belief that it will take longer than first hoped for rents to recover due to recent lockdowns. And with reporting season just around the corner, it suspects that outlook statements will be reasonably pessimistic. The Centuria Office REIT share price is trading at $2.41 today.
Xero Limited (ASX: XRO)
A note out of Macquarie reveals that its analysts have downgraded this cloud accounting platform provider's shares to an underperform rating with a $130.00 price target. The broker notes that Xero now has over 50% market share in the ANZ region. While this is quite an achievement, it means its local growth opportunities are reducing. As a result, Macquarie expects a sharp slowdown in ANZ subscriber growth to low single digits in the near future. In light of this, it finds it hard to justify its current valuation and has downgraded its shares. The Xero share price is fetching $141.04 today.
Zip Co Ltd (ASX: Z1P)
Another note out of Macquarie reveals that its analysts have retained their underperform rating but lifted their price target on this buy now pay later provider's shares to $6.15. This follows the release of the company's fourth quarter update. Macquarie notes that Zip's customer additions in the United States slowed during the quarter. It also sees risks from the company's plan to rebrand the QuadPay business as Zip. The Zip share price is trading at $6.77 on Tuesday.
