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:
Independence Group NL (ASX: IGO)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $4.15 price target on this nickel producer's shares. Credit Suisse has retained its bearish view despite upgrading its earnings estimates to reflect higher nickel prices following Indonesia's export ban. At 24x estimated FY 2020 earnings, the broker appears to believe its shares are overvalued and better value is on offer elsewhere in the sector. Independence Group's shares are up almost 2% to $6.74 on Tuesday.
Platinum Asset Management Ltd (ASX: PTM)
A note out of Goldman Sachs reveals that its analysts have reiterated their sell rating and $4.10 price target on this struggling fund manager's shares. According to the note, Platinum's funds under management are tracking notably lower than the broker's forecasts for FY 2020. And whilst it notes that its valuation is now more accommodating, it feels risks to earnings remain skewed to the downside. The Platinum share price is up 1% to $3.88 on Tuesday.
Vicinity Centres (ASX: VCX)
Equity analysts at Macquarie have downgraded this retail property asset manager's shares to an underperform rating with a $2.34 price target. According to the note, the broker appears concerned by the size of the company's capital expenditure in FY 2020, especially given its recent asset divestments. It doesn't appear overly confident that it will generate sufficient returns and suspects it could drag on its free cash flow. The Vicinity share price is trading around 0.5% lower to $2.58 in late morning trade on Tuesday.
