Top brokers name 3 ASX shares to sell today

Brokers are bearish on these ASX shares…

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Yesterday 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 ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Citi, its analysts have retained their sell rating and $6.00 price target on this infant formula company’s shares. Citi has been looking through recent peer updates and believes they indicate that the daigou channel will remain challenged in the short term. And while the a2 Milk share price has pulled back recently, the broker is sticking with its sell rating. This is due to its belief that there are risks to medium- and long-term margins due to an increased focus on the China offline channel. The A2 Milk share price is trading at $6.16 today.

IGO Ltd (ASX: IGO)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $6.40 price target on this nickel producer’s shares. This follows the release of the company’s fourth quarter update. While Morgan Stanley acknowledges that IGO had a solid finish to the year, it was disappointed with its guidance for FY 2022. It notes that its production guidance is softer than expected and its costs are higher than predicted. The IGO share price is currently fetching $8.98.

Rio Tinto Limited (ASX: RIO)

Analysts at UBS have retained their sell rating and $104.00 price target on this mining giant’s shares. This follows the release of Rio Tinto’s half year results, which fell a touch short of the broker’s expectations. Overall, the broker believes the risks are to the downside due to its belief that the iron ore price will pull back sharply over the next 12 months. The Rio Tinto share price was trading at $134.17 on Thursday.

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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 recommended A2 Milk. 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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