On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.
Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why they are bearish on them:
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Fortescue Metals Group Limited (ASX: FMG)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $14.00 price target on this mining giant's shares. Although Fortescue delivered a half year result in line with its expectations, it can't find a way to justify its current valuation. Especially given its belief that robust demand for Fortescue's low grade iron ore will be short lived. The Fortescue share price is trading at $20.70 on Thursday.
Pro Medicus Limited (ASX: PME)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and slashed their price target on this health imaging technology company's shares to $44.80. Its analysts believe there is a risk that Pro Medicus' growth could taper beyond FY 2022. If this happens, it feels the market will be unable to justify the sky high multiples that its shares trade on. The Pro Medicus share price has fallen heavily today and now trades at $45.64.
Seek Limited (ASX: SEK)
Another note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this job listings company's shares to $29.10. While Seek posted a half year result that was well ahead of the broker's estimates and upgraded its guidance, it isn't enough for a more positive rating. Goldman has concerns about how volume, depth, and pricing interplay through FY 2023 as the labour market starts to normalise. The Seek share price is now trading below this price target at $28.92.
