On Monday 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 these ASX 200 shares:
G8 Education Ltd (ASX: GEM)
According to a note out of the Macquarie equities desk, its analysts have retained their underperform rating but lifted the price target on this childcare centre operator’s shares to 80 cents. Macquarie believes that demand for childcare will be volatile in the near term and expects this to weigh on its performance. Especially given the oversupply of centres across the country. The G8 Education share price is trading at 94.3 cents on Tuesday afternoon.
South32 Ltd (ASX: S32)
Another note out of the Macquarie equities desk reveals that its analysts have downgraded this mining giant’s shares to an underperform rating with a $1.90 price target. The broker made the move due to concerns over the weak prices of some of the commodities it produces. It feels this could lead to South32 falling short of expectations in the near term. Especially with the Australian dollar strengthening and becoming a headwind. The South32 share price is changing hands for $2.05 today.
Star Entertainment Group Ltd (ASX: SGR)
Analysts at Morgan Stanley have downgraded this casino and resort operator’s shares to an underweight rating with an improved price target of $3.30. According to the note, the broker believes that Star’s Sydney business will be negatively impacted by the opening of the new Crown Resorts Ltd (ASX: CWN) resort in the city at the end of the year. It feels this potential disruption has not been priced into its shares currently. The Star share price is trading just below its price target at $3.24 this afternoon.
Those may be the shares to sell, but these are the shares that analysts have given buy ratings to…
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More reading
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- Investing $1,000 into these ASX 200 shares could be a smart move
- Coles shares and 2 other ASX 200 companies to buy in the current market
- The Santos share price is down 36%! This is what I’d do today
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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