On Monday I looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:
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Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgans, its analysts have retained their reduce rating and cut their price target on this iron ore miner's shares to $14.15. The broker made the move on the belief that iron ore prices could weaken and low grade discounts could widen further as China puts restrictions on steel output. In addition to this, a change to its valuation method has also negatively impacted its valuation. The Fortescue share price is fetching $14.66 on Tuesday.
Rio Tinto Limited (ASX: RIO)
A note out of UBS reveals that its analysts have retained their sell rating and cut their price target on this mining giant's shares to $86.00. The broker made the move in response to a correction in iron ore prices, which it notes is happening far quicker than it was anticipating. This has led to a downgrade in both its iron ore forecasts and its earnings estimates for Rio Tinto. UBS also has concerns over the longer term iron ore price due to supply increases. The Rio Tinto share price is trading at $95.87 this afternoon.
Vicinity Centres (ASX: VCX)
Analysts at Morgan Stanley have retained their underweight rating and $1.59 price target on this shopping centre operator's shares. While the broker acknowledges that Vicinity will benefit when the economy reopens, it believes this has already been factored into the current Vicinity share price. As a result, it feels there are better options for investors to consider as reopening investments. The Vicinity share price is currently trading at $1.68.
