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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A2 Milk Company Ltd (ASX: A2M)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $5.50 price target on this infant formula company's shares. Although the broker notes that infant formula prices have stabilised in August and inventory levels look to be going in the right direction, it isn't enough for a change of rating. Credit Suisse has concerns over slowing Chinese birth rates and the impact this may have on the company's sales. The A2 Milk share price is fetching $5.66 on Tuesday.
Alumina Limited (ASX: AWC)
A note out of Macquarie reveals that its analysts have retained their underperform rating and $1.30 price target on this alumina company's shares. Macquarie notes that alumina prices are rallying strongly and could rise further given the volatile political situation in Guinea. While this would give its earnings and dividend boost, the broker isn't getting excited just yet and holds firm with its rating. The Alumina share price is trading at $2.03 on Tuesday afternoon.
Rio Tinto Limited (ASX: RIO)
Analysts at UBS have retained their sell rating and $102.00 price target on this mining giant's shares. According to the note, the broker suspects that Rio Tinto will fall short of its iron ore production guidance for the calendar year. In addition to this, UBS notes that the global supply of iron ore is rising at a time that demand is weakening. This may not bode well for prices. The Rio Tinto share price is fetching $109.25 on Tuesday.
