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:
A2 Milk Company Ltd (ASX: A2M)
According to a note out of Citi, its analysts have downgraded this struggling infant formula company’s shares to a sell rating and slashed the price target on them by almost a third to $4.80. Citi made the move in response to COVID lockdowns impacting Chinese ports and weak pricing on Chinese ecommerce platforms. In addition, the broker has recently brought up concerns over delays to A2 Milk’s China label registration renewal. It feels if this renewal is denied it could damage its brand, as well as restrict it from selling in Chinese mother and baby stores. The A2 Milk share price is trading at $5.10 today.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Another note out of Citi reveals that it has commenced coverage on this plumbing parts company’s shares with a sell rating and $4.00 price target. While Citi is positive on the long term opportunity in the US market, it believes Reliance is facing some short term issues which pose downside risk to current consensus earnings. The Reliance share price is fetching $4.22 on Tuesday afternoon.
Sandfire Resources Ltd (ASX: SFR)
Analysts at Ord Minnett have retained their sell rating and $5.00 price target on this copper miner’s shares. According to the note, the broker has bumped its copper price forecasts higher due to the Russia-Ukraine conflict. However, while this is a positive for Sandfire, it isn’t enough for a change of rating. The broker continues to see the company’s shares as expensive at the current level. The Sandfire share price is trading at $5.78 today.