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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Inghams Group Ltd (ASX: ING)
According to a note out of Goldman Sachs, its analysts have downgraded this poultry producer's shares to a sell rating and trimmed their price target down to $3.25. The broker made the move largely on valuation grounds but also on concerns over rising feed costs. Goldman fears that this emerging headwind could present a risk to Ingham's medium term earnings. The Ingham's share price is trading below this price target at $3.07 today.
Insurance Australia Group Ltd (ASX: IAG)
A note out of UBS reveals that its analysts have retained their sell rating and $4.20 price target on this insurance giant's shares. This follows the release of an update on claims from the East Coast flooding. Overall, the broker believes the market is too optimistic on IAG's earnings and expects the company to fall short of consensus estimates in FY 2022 and FY 2023. The IAG share price is fetching $4.33 on Thursday.
Reject Shop Ltd (ASX: TRS)
Another note out of Goldman Sachs reveals that its analysts have downgraded this discount retailer's shares to a sell rating and cut their price target on them by 26% to $6.27. The broker has concerns about near term headwinds from lower foot traffic and higher input costs. Overall, it is expecting this to lead to Reject Shop also delivering earnings short of consensus estimates in FY 2022 and FY 2023. The Reject Shop share price is trading at $6.06 on Thursday afternoon.
