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 these ASX 200 shares:
Evolution Mining Ltd (ASX: EVN)
According to a note out of UBS, its analysts have retained their sell rating and cut the price target on this gold miner’s shares to $4.90. The broker notes that Evolution has downgraded its production guidance after recent drilling at its Mt Carlton operation led to a reduction in its life of mine plan. In light of this and the short life of some of its assets, the broker doesn’t believe that Evolution’s shares deserve to trade at a premium to its peers. The gold miner’s shares are changing hands at $5.24 this afternoon.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Citi reveals that its analysts have retained their sell rating and $11.70 price target on this iron ore producer’s shares. The broker believes the market is expecting too much from iron ore prices over the medium term. It suspects that prices will soften when steel production peaks and demand falls. And while the miner is busy with exploration activities, it doesn’t expect this to result in meaningful project development for a number of years. Fortescue’s shares are up at $13.98 on Tuesday.
Stockland Corporation Ltd (ASX: SGP)
Another note out of Citi reveals that its analysts have retained their sell rating and $3.21 price target on this property company’s shares. According to the note, the broker is concerned that its retail property assets could experience a sizeable decline in valuations in the short term. It also notes that Stockland has declared a distribution notably lower than its guidance and has indicated that its CEO will soon retire. The Stockland share price is trading at $3.67 this afternoon.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.