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:
Boral Limited (ASX: BLD)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut the price target on this building products company's shares to $4.10 following its guidance downgrade. The broker appears disappointed with the performance of its Stone and Roofing businesses and the outlook of its core Australia business. The Boral share price is pushing higher on Tuesday after a selloff on Monday. Its shares are changing hands at $4.77 in late trade.
JB Hi-Fi Limited (ASX: JBH)
Analysts at Citi have downgraded this retailer's shares to a sell rating but lifted the price target on them to $39.50. According to the note, the broker made the move on valuation grounds after a strong share price rally. While it has been very impressed with JB Hi-Fi's performance and feels its outlook is positive, it believes its shares are overvalued and the market is expecting too much from the company. The JB Hi-Fi share price is down 4% to $42.64 this afternoon.
REA Group Limited (ASX: REA)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this property listings company's shares to an underperform rating with an improved price target of $110.00. According to the note, the broker was impressed with its solid first half performance given the significant decline in national listings. And while it expects listing volumes to recover in the second half and support its earnings, it feels the market is expecting too much from REA Group based on its current share price. The REA Group share price is down 1% to $113.01 on Tuesday.
