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 shares:
Galaxy Resources Limited (ASX: GXY)
According to a note out of Ord Minnett, its analysts have downgraded this lithium miner's shares to a sell rating with a 90 cents price target. The broker made the move largely on valuation grounds. Although it believes that lithium prices have now bottomed, it feels that a recovery is more than priced into its shares. In light of this, it doesn't see value in its shares at the current level. The Galaxy share price is changing hands for $1.39 on Tuesday afternoon.
Sandfire Resources Ltd (ASX: SFR)
Analysts at Goldman Sachs have retained their sell rating and $4.60 price target on this copper producer's shares. Although Goldman is positive on copper, it has concerns over the short mine lift of the Degrussa copper mine and expects its overall production to take a step down in the future. Goldman is also forecasting a significant increase in C1 unit costs, which could weigh on its margins. The Sandfire share price is trading at $4.64 this afternoon.
Xero Limited (ASX: XRO)
A note out of UBS reveals that its analysts have retained their sell rating but increased their price target on this business and accounting software platform provider's shares to $72.00. UBS has been looking into the sector and notes that Xero is highly rated by accountants. Its research also reveals that cloud penetration growth remains solid. However, its survey of accountants shows that they believe business closures may be higher than normal over the next 12 months. This could weigh on customer growth in the short term. The Xero share price is fetching $91.00 on Tuesday.
