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:
Australian Pharmaceutical Industries Ltd (ASX: API)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this pharmacy chain operator and distributor's shares to $1.28. The broker notes that Australian Pharmaceutical Industries has now offloaded its stake in Sigma Healthcare Ltd (ASX: SIG). It believes this came at a loss of ~$3.5 million. Whilst this is disappointing, the main disappointment is the sale all but confirms that the wholesale pharmaceutical distribution industry is unlikely to be consolidated now. The Australian Pharmaceutical Industries share price is trading at $1.30 this afternoon.
Beach Energy Ltd (ASX: BPT)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this energy producer's shares to an underperform rating with an improved price target of $2.40. According to the note, the broker believes the appreciation in the Beach Energy share price this year has now captured its future growth. In light of this, it feels the risk is to the downside now and thus downgrades its rating. The Beach Energy share price is changing hands at $2.68 at the time of writing. This means its shares have more than doubled since the start of the year.
Fortescue Metals Group Limited (ASX: FMG)
Analysts at UBS have retained their sell rating and $8.00 price target on this iron ore producer's shares. According to the note, the broker appears to believe that Fortescue's shares have got ahead of themselves this year. And with the broker expecting iron ore supply to normalise in the near term, it fears this could weigh heavily on its share price. The Fortescue share price is currently up slightly to $10.90.
