On Monday 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:
Evolution Mining Ltd (ASX: EVN)
According to a note out of Ord Minnett, its analysts have downgraded this gold miner's shares to a sell rating with a $3.70 price target. The broker made the move on valuation grounds after strong gains over the last few weeks. It believes this has left Evolution's shares looking somewhat stretched at the current level. This hasn't been enough to stop the company's shares from charging higher on Tuesday. In afternoon trade the Evolution share price is up 4.5% to $4.97.
G8 Education Ltd (ASX: GEM)
A note out of the Macquarie equities desk reveals that its analysts have downgraded this childcare centre operator's shares to an underperform rating with a 78 cents price target. Although the broker expects its capital raising to leave it with a strong balance sheet, it has concerns over the state of the industry. It expects there to be an oversupply in the childcare industry for at least a couple more years. In addition to this, it suspects that demand could taper off when government assistance ends and unemployment levels rise. The G8 Education share price has fallen hard on Tuesday and is down 8.5% to 79.5 cents.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
Analysts at Citi have reiterated their sell rating and reduced their price target on Sydney Airport's shares to $5.87. This follows the release of the airport operator's traffic update on Monday which revealed a sharp decline in passenger numbers. According to the note, Citi expects passenger numbers to halve in 2020. And while a recovery domestically may not take long, it fears it could be some time until international passenger numbers return to normal. The Sydney Airport share price is down 5% to $5.80 this afternoon.
