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 that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
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. The broker notes that infant formula prices stabilised in September. It also highlights that marketing activity is increasing ahead of the major Double 11 shopping event in China. However, Credit Suisse appears to believe it is too soon to get excited and holds firm with its underperform rating. The A2 Milk share price is fetching $6.11 on Wednesday.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target down to a lowly $11.40. The broker is particularly bearish on low grade iron ore prices and feels the miner's shares are overvalued at the current level. This is particularly the case in comparison to some of its iron ore peers. The Fortescue share price is trading at $14.09 this afternoon.
Unibail-Rodamco-Westfield CDI (ASX: URW)
Analysts at Ord Minnett have retained their sell rating and $4.00 price target on this shopping centre operator's shares. According to the note, the broker acknowledges that the company's shares have pulled back meaningfully in recent months. However, it still doesn't see enough value in its shares or proof that a rebound in trading conditions is taking place. In light of this, it holds firm with its sell rating for now. The Unibail-Rodamco-Westfield share price is trading at $4.92 today.
