On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on them:
Iluka Resources Limited (ASX: ILU)
A note out of Citi reveals that its analysts have retained their sell rating and $9.00 price target on this mineral sands company's shares. According to the note, the broker was not surprised to see Iluka announce a pre-tax impairment charge of US$290 million. Whilst this is disappointing, the main reason for its bearish stance is its valuation. Earlier this month Citi downgraded its shares in response to its stretched valuation following strong gains in 2019. The Iluka share price is changing hands at $9.48 on Thursday.
OZ Minerals Limited (ASX: OZL)
Analysts at Goldman Sachs have downgraded this copper producer's shares to a sell rating with an $8.70 price target. According to the note, the broker made the move for a number of reasons. One of the main ones was concerns over commissioning risk at its Carrapateena operation over the next 6 months. It also believes its shares are overvalued following a strong gain in 2019. The OZ Minerals share price is down 2% to $10.70 in afternoon trade.
Treasury Wine Estates Ltd (ASX: TWE)
According to another note out of Goldman Sachs, its analysts have retained their sell rating and $15.30 price target on this wine company's shares. The broker has been looking through key industry trends. Its data appears to show difficulties in the US market and a deterioration in Chinese pricing and wine imports. Of the 12 products it surveys on Chinese e-commerce platforms, 7 declined in price month on month. The Treasury Wine share price is fetching $16.79 this afternoon.
