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:
Australia and New Zealand Banking GrpLtd (ASX: ANZ)
According to a note out of Citi, its analysts have retained their sell rating and $28.00 price target on this banking giant's shares. The broker has been looking at recent APRA data, which appears to indicate a sharp contraction in the bank's mortgage book. Citi notes that this underperformance has been apparent for a number of years and believes it is being driven by a number of issues internally. And while the ANZ share price has fallen to its price target, it isn't in a rush to change its rating. This is due to the belief that there are better options elsewhere in the sector. The ANZ share price is trading at $27.69.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $28.00 price target on this mining giant's shares. The broker notes that Fortescue has the most ambitious decarbonisation goals of all the global miners. The broker believes it could cost over US$7 billion to decarbonise the estimated ~2.9Mt of CO2 greenhouse gas emissions from its Pilbara iron ore operations by 2030. Outside this, the broker feels its peers trade on more attractive valuations and has concerns over the widening discount of lower grade iron ore. The Fortescue share price is fetching $18.10 on Tuesday.
Zip Co Ltd (ASX: Z1P)
Analysts at Macquarie have retained their underperform rating and cut their price target on this buy now pay later (BNPL) provider's shares to $5.70. According to the note, the broker has concerns of elevated bad debts, slowing customer growth, and softer web traffic. It also notes that this comes at a time when Zip will soon be cycling very strong months from the second quarter of FY 2021. The Zip share price is trading at $6.92 today.
