On Monday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:
Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgans, its analysts have retained their reduce rating but lifted the price target on this iron ore producer's shares to $6.38 following its full year results. Whilst the result smashed Morgans expectations due to high iron ore prices, the broker is concerned by recent weakness in prices. In light of this and its current valuation, the broker has retained its reduce rating. The Fortescue share price is up 5.5% to $7.56 on Tuesday afternoon.
Goodman Group (ASX: GMG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted the price target on this property company's shares to $12.44 following the release of its full year results. According to the note, although Goodman Group delivered a 10.5% increase in earnings per share in FY 2019, Goldman felt the quality of its earnings growth was low in relation to the overall earnings mix. And while the broker thinks Goodman Group is a quality company, it isn't a fan of its current valuation and believes there are better options out there for investors to consider. The Goodman Group share price is down almost 3% to $14.88 today.
Mayne Pharma Group Ltd (ASX: MYX)
Analysts at the Macquarie equites desk have retained their underperform rating and 51 cents price target on this pharmaceutical company's shares. According to the note, the broker appears optimistic that its pipeline of drugs could give its earnings a boost over the medium term, but has concerns over the tough trading conditions it faces in the key generic drugs market at present. In light of this, it intends to stick with its underperform rating until it has seen improvements. Mayne Pharma's shares are down almost 5% to 45.7 cents today.
