On Sunday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all been given the dreaded sell rating. Here’s why:
BHP Group Ltd (ASX: BHP)
According to a note out of Deutsche Bank, its analysts have retained their sell rating and cut the price target on this mining giant’s shares to a lowly $28.00 following the release of its third quarter update. The broker cut its price target largely on the back of the company’s lower iron ore production due to Tropical Storm Veronica. Deutsche remains bearish on BHP due to its belief that margins have peaked and concerns over the impact of weakness in the Chinese property sector. The miner’s shares last trade at $38.23.
Blackmores Limited (ASX: BKL)
A note out of Citi reveals that its analysts have retained their sell rating and trimmed the price target on this health supplements company’s shares to $82.50 following its disappointing third quarter update. According to the note, the broker acknowledges that its strong brand and positive tailwinds in China should support its long term growth, but in the near term it has concerns about its marketing and China strategy. Furthermore, despite the sizeable share price pullback, the broker feels its shares are far from cheap. Blackmores’ shares last closed at $92.81.
Evolution Mining Ltd (ASX: EVN)
Analysts at Credit Suisse have retained their underperform rating and $2.55 price target on this gold miner’s shares following its recent quarterly update. According to the note, Evolution’s performance during the quarter was weaker than it expected. And although the company is still on track to achieve the middle of its full year production guidance, it isn’t enough for Credit Suisse to make any changes to its recommendation. The Evolution share price closed the week at $3.24.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores 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.