Yesterday we looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
ARB Corporation Limited (ASX: ARB)
According to a note out of Credit Suisse, its analysts have retained their underperform rating but lifted their price target on this 4×4 parts manufacturer's shares to $40.60. This follows the release of its half year trading update. Credit Suisse was pleasantly surprised to see ARB outperform its estimates during the first half of FY 2022. This has led to the broker upgrading its full year estimates and valuation accordingly. However, it still believes its shares are overvalued at the current level, particularly given its concerns that ARB's margins are unsustainable. The ARB share price is trading at $46.94 on Tuesday.
Brambles Limited (ASX: BXB)
A note out of Morgan Stanley reveals that its analysts have downgraded this logistics solutions company's shares to an underweight rating and cut the price target on them to $9.30. Its analysts made the move due to concerns over current supply chain challenges which it fears could be weighing on Brambles' performance. The Brambles share price is trading at $9.50 on Tuesday afternoon.
IGO Ltd (ASX: IGO)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $9.70 price target on this battery materials miner's shares. This follows the release of its second quarter update which revealed greater than expected capital expenditures. In light of this and its current valuation, the broker appears to see no reason to change its recommendation at this point. The IGO share price is currently fetching $11.73.
