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:
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Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and $18.55 price target on this iron ore giant's shares. Although Fortescue delivered a full year result in line with its expectations, it isn't enough for a change of rating. The broker remains bearish due to concerns over the iron ore cycle turning negative, widening low grade discounts, and higher capital expenditure. The Fortescue share price is currently trading at $21.08.
InvoCare Limited (ASX: IVC)
A note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this funerals company's shares to $11.00. Citi notes that InvoCare delivered a strong first half result, which was well ahead of its forecasts. However, it fears that a lot of this could be undone in the second half due to lockdowns. In light of this, it is holding firm with its sell rating. The InvoCare share price is fetching $12.27 today.
Wesfarmers Ltd (ASX: WES)
Another note out of Citi reveals that its analysts have retained their sell rating but lifted their price target on this conglomerate's shares to $49.00. Citi was pleased with Wesfarmers' performance in FY 2021 and the announcement of a $2.3 billion capital return. However, due to valuation concerns, the broker isn't in a rush to change its rating. Particularly given supply chain disruptions, rising freight and commodity costs, and increasing investment in digital and automation. The Wesfarmers share price is trading at $60.13 today.
