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:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgans, its analysts have retained their reduce rating and increased the price target on this iron ore producer's shares slightly to $6.19. Morgans remains bearish on Fortescue on valuation grounds and due to concerns that iron ore prices will moderate in the near term. The Fortescue share price has more than doubled in value since the start of the year and last traded at $8.21, which is significantly higher than the broker's price target.
GUD Holdings Limited (ASX: GUD)
Analysts at UBS have downgraded this products company's shares all the way from a buy rating to a sell rating and slashed the price target on them materially to $9.50 following the release of its full year results. According to the note, although its results were in line with expectations, the broker has concerns over a number of headwinds being faced by the company at present. In light of this, it believes earnings growth may be hard to come by in FY 2020. The GUD share price is currently trading at $9.64.
NIB Holdings Limited (ASX: NHF)
A note out of Ord Minnett reveals that its analysts have downgraded this private health insurer's shares to a sell rating with a price target of $6.58. According to the note, the broker believes that NIB is facing pressure on premium rates that could negatively impact its growth and margins in the near term. In light of this, it doesn't believe that its shares deserve to be trading at such as premium to the market average right now. NIB's shares are currently down 2% to $8.00.
