Leading brokers name 3 ASX shares to sell today

Here’s why brokers are bearish on these ASX shares…

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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:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. UBS notes that Afterpay will soon allow US consumers to use its pay anywhere offering at non-integrated retailers including Amazon. UBS is positive on the move and has upgraded its underlying sales estimates meaningfully to reflect this. However, it still isn’t enough for a more positive rating, with the broker continuing to believe its shares are vastly overvalued. The Afterpay share price is fetching $121.00 today.

Air New Zealand Limited (ASX: AIZ)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut their price target on this airline operator’s shares to NZ$1.10 (A$1.02). This follows the recent release of a trading update which revealed that Air New Zealand expects significant losses in both FY 2021 and FY 2022. The Air New Zealand share price is trading at $1.44 this afternoon.

Evolution Mining Ltd (ASX: EVN)

Analysts at Morgan Stanley have downgraded this gold miner’s shares to an underweight rating with a $4.30 price target. According to the note, the broker made the move due to both its belief that the gold price will fall to US$1,660/oz in FY 2022 and on valuation grounds. In respect to the latter, Morgan Stanley notes that its expansion opportunities at Red Lake and Cowal are fully priced into forecasts, meaning there is limited upside risk to its earnings. In addition to this, it notes that there are execution risks to consider. Overall, it feels investors would be better off looking at other miners for exposure to gold. The Evolution share price is trading at $4.54 today.

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Motley Fool contributor 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 and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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