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Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:
According to a note out of Goldman Sachs, its analysts have retained their sell rating and cut their price target on this job listings giant’s shares to $26.60. This is despite the broker forecasting Seek to deliver EBITDA ahead of consensus estimates and up 57% year on year in FY 2022. Goldman doesn’t believe this strong growth will be sustained and is forecasting a modest 4% lift in FY 2023. In light of this, it feels its shares are expensive at the current level. The Seek share price is trading at $24.39 on Tuesday.
A note out of Citi reveals that its analysts have downgraded this conglomerate’s shares to a sell rating and cut their price target on them to $42.00. The broker has been looking at the retail sector and appears to have concerns over the impact that high fuel prices, rising interest rates, and the resumption of travel will have on consumer confidence. The Wesfarmers share price is fetching $49.73 this afternoon.
Analysts at UBS have retained their sell rating and cut their price target on this cloud accounting platform provider’s shares to $70.00. While Xero outperformed the broker’s revenue expectations, its subscriber numbers fell short and no operating leverage emerged. However, the main sticking point for the broker is the company’s lack of cash flow. UBS feels this makes its valuation stretched despite recent weakness. The Xero share price is trading at $86.18 today.