Yesterday 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 ASX shares that have just been given sell ratings by brokers are listed below. Here's why these brokers are bearish on them:
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Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this iron ore producer's shares to $12.50. The broker remains very bearish on miners with exposure to low grade iron ore. This is due to the prospect of a widening discount as steel makers focus on higher grade ore. The Fortescue share price is trading at $15.04 on Thursday afternoon.
IGO Ltd (ASX: IGO)
Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and trimmed the price target on this mining company's shares to $8.25. The broker has increased its earnings to reflect upgrades to lithium and nickel price forecasts. However, due to a change in its valuation model, this has ended up with a slight reduction in its price target. The broker continues to believe IGO's shares are fully valued. The IGO share price is changing hands for $8.81 this afternoon.
Jupiter Mines Ltd (ASX: JMS)
Analysts at Macquarie have retained their underperform rating and cut their price target on this manganese mining company's shares to 19 cents. This follows the release of its second quarter update earlier this week. Macquarie notes that Jupiter has been struggling with continued equipment breakdowns, leading to loss of mining days. In addition, the company is due to receive a softer than expected dividend from its ownership of the Tshipi mine, which will impact Jupiter's own dividend. The Jupiter Mines share price is fetching 22.5 cents today.
