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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company’s shares. Although the broker notes that infant formula prices have stabilised in August and inventory levels look to be going in the right direction, it isn’t enough for a change of rating. Credit Suisse has concerns over slowing Chinese birth rates and the impact this may have on the company’s sales. The A2 Milk share price is fetching $5.66 on Tuesday.
Alumina Limited (ASX: AWC)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $1.30 price target on this alumina company’s shares. Macquarie notes that alumina prices are rallying strongly and could rise further given the volatile political situation in Guinea. While this would give its earnings and dividend boost, the broker isn’t getting excited just yet and holds firm with its rating. The Alumina share price is trading at $2.03 on Tuesday afternoon.
Rio Tinto Limited (ASX: RIO)
Analysts at UBS have retained their sell rating and $102.00 price target on this mining giant’s shares. According to the note, the broker suspects that Rio Tinto will fall short of its iron ore production guidance for the calendar year. In addition to this, UBS notes that the global supply of iron ore is rising at a time that demand is weakening. This may not bode well for prices. The Rio Tinto share price is fetching $109.25 on Tuesday.
The post Leading brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: BHP & Fortescue fall, Flight Centre storms higher
- Alumina (ASX:AWC) share price flat despite potential tailwinds for bauxite
- Why BHP, Fortescue, & Rio Tinto shares could tumble today
- Here’s why the A2 Milk (ASX:A2M) share price is down 6% in a month
- Here are the 3 most traded ASX 200 shares this Monday
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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