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:
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Evolution Mining Ltd (ASX: EVN)
According to a note out of Ord Minnett, its analysts have retained their sell rating but lifted their price target this gold miner's shares to $4.50. The broker is concerned about the gold sector due to the upcoming U.S. election. It suspects that a Biden win could boost the gold price in the short term but actually weigh on it in the longer term as the near term economic growth outlook improves. The Evolution share price is trading is at $5.88.
ResMed Inc. (ASX: RMD)
A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and $20.00 price target on this medical device company's shares. Although the broker believes the current reimbursement environment is more favourable than in recent years, it sees competition risks. It fears this could put pressure on ResMed's gross margin and ultimately its bottom line. The ResMed share price is changing hands for $25.50 this afternoon.
Zip Co Ltd (ASX: Z1P)
Analysts at Citi have retained their sell rating and cut the price target on this buy now pay later provider's shares to $6.55. According to the note, the broker believes that Zip is well-placed for strong growth thanks to the increasing adoption of the payment method and its increased investment in the UK and United States. However, it sees risks to its margins from increased competition, which it fears could see it fall short of consensus growth forecasts over the medium term. Zip shares are fetching $7.14 on Tuesday.
