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 they are bearish on them:
Domain Holdings Australia Ltd (ASX: DHG)
According to a note out of UBS, its analysts have downgraded this property listings company's shares to a sell rating from neutral with a $2.75 price target. The broker made the move largely on valuation grounds after its shares rose strongly in 2019. In addition to this, the broker notes that listings remain weak and expects its revenue to decline during the first half of FY 2020. The Domain share price is trading 4.5% lower at $2.92 on Tuesday morning.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at Morgans have retained their reduce rating and lifted the price target on this iron ore producer's shares slightly to $6.15. According to the note, the broker continues to believe that Fortescue's shares are overvalued at the current level. So much so, it estimates that iron ore prices would have to average ~US$130 a tonne over the next two years to be able to justify its current valuation. The Fortescue share price is currently down 1% to $8.82 this morning.
IDP Education Ltd (ASX: IEL)
Another note out of UBS reveals that its analysts have retained their sell rating but increased the price target on this education services company's shares to $15.40. According to the note, the broker believes that trading conditions are very favourable for the company currently and the long-term structural outlook is very positive. It also believes IDP Education has a major opportunity with its digital business. However, it feels that its valuation has become stretched after a significant rise in 2019. The IDP Education share price is up 1% to $19.10 at the time of writing.
