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:
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OZ Minerals Limited (ASX: OZL)
According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted their price target on this copper miner's shares to $21.30. The broker lifted its price target to reflect increased production at Carrapateena, current commodity prices, and foreign exchange rates. However, despite this, the broker continues to believe its shares are overvalued, particularly given its belief that its earnings will fall notably in FY 2022. The OZ Minerals share price is trading at $26.39 today.
Rio Tinto Limited (ASX: RIO)
A note out of UBS reveals that its analysts have retained their sell rating and $86.00 price target on this mining giant's shares. This follows the release of a weaker than expected third quarter update last week. UBS continues to believe that iron ore prices will fall meaningfully due to a recovery in supply and a buildup of inventories. And while it still expects big dividends in the second half, it isn't enough for a more positive rating on its shares. The Rio Tinto share price is fetching $98.64 today.
Zip Co Ltd (ASX: Z1P)
Another note out of UBS reveals that its analysts have retained their sell rating and $5.40 price target on this buy now pay later provider's shares. This follows the release of Zip's first quarter update on Monday. UBS has concerns that Zip's active customers in the US (customers that have transacted once in the last 12 months) could contain a significant amount of customers that are no longer active and will drop off once the 12-month period passes. It fears this could weigh on its absolute customer growth in the coming quarters. The Zip share price is trading at $6.99 on Tuesday afternoon.
