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 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:

Endeavour Group Ltd (ASX: EDV)

According to a note out of Credit Suisse, its analysts have commenced coverage on this drinks company with an underperform rating and $5.86. The broker isn’t overly positive on Endeavour due to its capital intensity, regulatory risks from its gaming operations, and its inconsistent profits. And while its suspects that the company could have had a strong second half due to favourable trading conditions, it isn’t as positive on the future. This is due to declining alcohol consumption and its lack of a growth runway. The Endeavour share price is currently trading at $6.35.

Evolution Mining Ltd (ASX: EVN)

A note out of Macquarie reveals that its analysts have downgraded this gold miner’s shares to an underperform rating and trimmed their price target on them to $4.00. The broker made the move after Evolution’s quarterly update fell short of expectations. In addition to this, Macquarie was disappointed with its medium term outlook. It notes that Evolution’s costs and capex forecasts were much higher than it was expecting. The Evolution share price is fetching $4.20 today.

Rio Tinto Limited (ASX: RIO)

Analysts at UBS have retained their sell rating and $104.00 price target on this mining giant’s shares. According to the note, Rio Tinto underperformed the broker’s expectations during a challenging second quarter. And while it notes that the company is benefiting from very strong iron ore prices, it isn’t convinced this will last. UBS continues to forecast a sharp pullback in the price of the steel making ingredient as Chinese demand softens and supply increases. The Rio Tinto share price is currently trading at $124.46 on Tuesday.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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