On Monday 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 just been given sell ratings. Here's why:
Boral Limited (ASX: BLD)
According to a note out of Credit Suisse, its analysts have downgraded this building products company's shares to an underperform rating and trimmed the price target on them to $4.40. It made the move after Boral's management conceded that growth in infrastructure and non-residential activity would not offset the decline in residential for FY 2020. This led to Credit Suisse adjusting its forecasts for FY 2020 and its recommendation accordingly. The Boral share price has fallen 2% to $5.20 on Tuesday.
Premier Investments Limited (ASX: PMV)
A note out of Citi reveals that its analysts have retained their sell rating and trimmed the price target on this retail conglomerate's shares to $15.50. According to the note, the broker believes that sales of its core brands are going to slow in the second half. And although the broker feels that the company can still grow retails earnings at a solid rate over the next three years, this will be dependent partly on the success of Smiggle's expansion into the wholesale channel, which is by no means guaranteed. The Premier Investments share price has tumbled 6% lower to $15.89 this afternoon.
St Barbara Ltd (ASX: SBM)
Analysts at Macquarie have retained their underperform rating and cut the price target on this gold miner's shares to $2.50 following its production downgrade late last week. According to the note, the broker acknowledges that the downgrade was only minor, but feels that the outlook for its key Gwalia mine has weakened in recent times. In addition to this, it notes that the timing of the downgrade was very unfortunate. St Barbara has been trying to raise funds at $2.89 per share to acquire Canada-based Atlantic Gold. It has now allowed retail investors to withdraw from the retail entitlement offer after a sharp pullback in its share price. St Barbara's shares are currently trading 1% higher at $2.61 on Tuesday afternoon.
