Leading brokers name 3 ASX shares to sell today

Here's why brokers aren't feeling positive about these ASX shares…

| More on:
Business man marking Sell on board and underlining it

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Yesterday we looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with brokers right now. Three that have just been given sell ratings are listed below. Here's why these brokers are bearish on these ASX shares:

Evolution Mining Ltd (ASX: EVN)

According to a note out of UBS, its analysts have downgraded this gold miner's shares to a sell rating with an improved price target of $4.23. Although the broker has bumped its gold price forecasts higher and lifted its valuation for Evolution accordingly, it isn't enough for a more positive rating. The broker has downgraded the miner's shares on valuation grounds. The Evolution share price was trading at $4.41 on Tuesday.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this iron ore giant's shares to $15.95. Although the broker expects Fortescue to benefit from stronger than previously expected iron ore prices, it can't look beyond the company's valuation. It feels Fortescue's shares are overvalued and also has concerns with costs relating to its Fortescue Future Industries business. The Fortescue share price was fetching $19.49 today.

Premier Investments Limited (ASX: PMV)

Analysts at Goldman Sachs have retained their sell rating but lifted their price target on this retail conglomerate's shares to $24.30. While Goldman acknowledges that Premier Investments' first half result was solid and its gross margin was strong, it suspects the consumer environment will soften over the next year. In light of this and the significant premium that it trades on compared to its peers, the broker believes its shares are expensive at current levels. The Premier Investments share price was trading at $28.32 on Tuesday.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

Five young people sit in a row having fun and interacting with their mobile phones.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A male electricity worker in hard hat and high visibility vest stands underneath large electricity generation towers as he holds a laptop computer and gazes up at the high voltage wires overhead.
Energy Shares

AGL share price dives 7% on broker downgrade

Broker Barrenjoey has released a note forecasting lower earnings for AGL between FY26 and FY30.

Read more »

Woman smiles at camera at she buys greens from the supermarket.
Broker Notes

Are Woolworths shares a bargain buy after being sold off?

Let's see what Goldman Sachs is saying about this blue chip following its update.

Read more »

a cute little boy with curly hair wearing a business suit with a tie and too big glasses looks intently at an old fashioned business calculator with a scroll of paper spilling onto his desktop.
Broker Notes

These 3 ASX 200 shares just got a big broker upgrade

Do you own any of these shares that brokers just upgraded?

Read more »

a smiling woman sits at her computer at home with a coffee alongside her, as if pleased with her investments.
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Guess which hugely popular ASX 300 stock was just downgraded

A leading broker has taken off its buy rating this morning. But why?

Read more »

A coal miner wearing a red hard hat holds a piece of coal up and gives the thumbs up sign in his other hand
Broker Notes

3 market-dominating ASX 200 shares just upgraded by top brokers

Leading brokers just upped their forecasts for these three ASX 200 shares.

Read more »