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:
Mineral Resources Limited (ASX: MIN)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $30.20 price target on this mining and mining services company's shares. This follows the release of a mixed second quarter update. Morgan Stanley appears disappointed with Mineral Resources' iron ore and lithium shipments during the quarter. In light of this and its belief that its valuation is stretched, it has held firm with its underweight rating. The Mineral Resources share price is trading at $36.36 this afternoon.
Sims Ltd (ASX: SGM)
Analysts at Goldman Sachs have downgraded this scrap metal company's shares to a sell rating with an improved price target of $11.38. According to the note, the broker notes that steel prices have been retreating after strong gains in recent months. This is being driven by an improvement in supply. Goldman expects this to continue and for market dynamics and pricing to normalise in 2021. The Sims share price is fetching $12.60 on Tuesday.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted the price target on this airport operator's shares to $5.00. Credit Suisse is expecting international passenger numbers to remain at ultra low levels in 2021. This is because the broker suspects that Australia will not reopen international borders until enough of the population is vaccinated. In light of this, it expects its earnings to fall well short of consensus estimates for the year. The Sydney Airport share price is trading at $5.82 today.
