Yesterday we 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:
Evolution Mining Ltd (ASX: EVN)
According to a note out of UBS, its analysts have downgraded this gold miner’s shares to a sell rating with an improved price target of $4.23. Although the broker has bumped its gold price forecasts higher and lifted its valuation for Evolution accordingly, it isn’t enough for a more positive rating. The broker has downgraded the miner’s shares on valuation grounds. The Evolution share price was trading at $4.41 on Tuesday.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this iron ore giant’s shares to $15.95. Although the broker expects Fortescue to benefit from stronger than previously expected iron ore prices, it can’t look beyond the company’s valuation. It feels Fortescue’s shares are overvalued and also has concerns with costs relating to its Fortescue Future Industries business. The Fortescue share price was fetching $19.49 today.
Premier Investments Limited (ASX: PMV)
Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate’s shares to $24.30. While Goldman acknowledges that Premier Investments’ first half result was solid and its gross margin was strong, it suspects the consumer environment will soften over the next year. In light of this and the significant premium that it trades on compared to its peers, the broker believes its shares are expensive at current levels. The Premier Investments share price was trading at $28.32 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
- 5 things to watch on the ASX 200 on Tuesday
- Leading brokers name 3 ASX shares to buy today
- Why Evolution, Fisher & Paykel Healthcare, St Barbara, and Zip shares are falling
- What is the outlook for ASX 200 mining shares in April?
- How big will the Fortescue (ASX:FMG) dividend be in 2022?
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 Premier Investments Limited. 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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