On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:
Ramsay Health Care Limited (ASX: RHC)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut their price target on this private hospital operator’s shares to $61.00. The broker has been looking over the healthcare sector and picked out its winners and losers. It feels investors should avoid Ramsay and focus on healthcare shares that are more reasonably priced. The Ramsay share price is trading at $66.15 this afternoon.
Rio Tinto Limited (ASX: RIO)
A note out of UBS reveals that its analysts have retained their sell rating and $80.00 price target on this mining giant’s shares. This follows the release of a fourth quarter update that fell a touch short of the broker’s expectations. In addition, the broker was disappointed with Rio Tinto’s guidance for FY 2022. This was particularly the case with its aluminium and iron ore guidance. UBS also sees downside risk to iron ore prices, which could weigh on its performance. The Rio Tinto share price is fetching $112.93 today.
Sandfire Resources Ltd (ASX: SFR)
Analysts at Goldman Sachs have downgraded this copper miner’s shares to a sell rating with a $6.10 price target. According to the note, the broker believes Sandfire’s shares are overvalued at 1.2x net asset value. In addition, the broker feels the company’s current valuation implies a long run copper price of US$4.8 per pound, which is notably higher than its forecast of US$4.1 per pound. The Sandfire share price is trading at $7.29 on Thursday afternoon.