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:
Blackmores Limited (ASX: BKL)
According to a note out of Citi, its analysts have retained their sell rating and $59.20 price target on this health supplements company’s shares. The broker notes that rival Swisse is planning to increase its investment in marketing in Australia. It fears this could weigh on Blackmores’ performance in the local market. Citi suspects that this could lead to slower than expected growth, which could be bad news for its shares given the high multiples they trade on. The Blackmores share price is fetching $82.38 this afternoon.
Premier Investments Limited (ASX: PMV)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this retail conglomerate’s shares to $20.20. Although Premier Investments delivered a strong first half result, the broker doesn’t believe it is sustainable. Particularly given how its earnings continue to benefit from wage and rent subsidies. In addition to this, with Goldman forecasting its earnings to growth by a CAGR of 3.8% over FY 2019-23, it feels its shares are expensive at 23x estimated FY 2022 earnings. The Premier Investments share price is trading at $24.88 on Thursday.
Resolute Mining Limited (ASX: RSG)
Analysts at Macquarie have downgraded this gold miner’s shares to an underperform rating and slashed the price target on them to 55 cents. According to the note, the broker made the move after the Ghanaian government terminated its Bibiani gold mine licence. Unfortunately for Resolute, this has happened just a matter of weeks before the expected sale of the asset to Chifeng Jilong. Macquarie believes the sale is now unlikely to go ahead, at least on current terms. The Resolute share price has crashed 25% lower to 47.2 cents today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.