Yesterday 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 ASX shares that have just been given sell ratings by brokers are listed below. Here's why these brokers are bearish on them:
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Nanosonics Ltd (ASX: NAN)
According to a note out of Citi, its analysts have retained their sell rating but lifted their price target on this infection prevention company's shares to $5.00. While Nanosonics delivered a full year result ahead of Citi's expectations, it wasn't enough for a change of rating. The broker continues to believe its shares are overvalued. It also doesn't believe the market is taking into account execution risks for new product launches. The Nanosonics share price was fetching $7.01 on Thursday.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this fund manager's shares to $3.85. Platinum's FY 2021 results fell a touch short of Macquarie's expectations due to higher costs. Outside this, the broker highlights that Platinum's international funds are underperforming, which it feels will put pressure on fund flows. The Platinum share price fell heavily on Thursday and ended the day at $3.94.
Reece Ltd (ASX: REH)
Another note out of Macquarie reveals that its analysts have retained their underperform rating and cut their price target on this plumbing parts company's shares to $18.80. This follows the release of a full year result that was just ahead of expectations. However, the broker was disappointed with the performance of Reece's US business. Combined with its shares trading on lofty multiples, Macquarie is holding firm with its underperform rating. The Reece share price has pulled back significantly since its result but is still trading above the broker's price target at $20.64.
