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Top brokers name 3 ASX shares to sell today

business man holding sign stating time to sell
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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 ASX shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have retained their sell rating and $4.90 price target on this gold miner’s shares following its investor day update. The broker notes that its production targets at Red Lake and Mungari are notably higher than expected. Though, it isn’t overly convinced this is achievable. As such, it sees no reason to change its rating at this stage and continues to believe its shares are overvalued given its outlook. The Evolution share price is changing hands for $5.66 this afternoon.

Sigma Healthcare Ltd (ASX: SIG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this pharmacy chain operator and distributor’s shares to 60 cents ahead of its half year results. The broker is expecting the company to report a sharp decline in sales and profits during the half. This is largely due to the loss of its contract with the Chemist Warehouse. The Sigma share price is trading at 65 cents on Thursday.

Zip Co Ltd (ASX: Z1P)

Analysts at Citi have downgraded this buy now pay later provider’s shares to a sell rating with a $6.70 price target. The broker made the move partly on valuation grounds after a strong gain in recent months and due to concerns over the entry of PayPal into the buy now pay later market. Especially given the company’s late entry into the key US market with its Quadpay business, which trails the market leaders by some distance. The Zip share price is trading at $7.09 today.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. 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.

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