On Monday I looked at three ASX shares that 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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Evolution Mining Ltd (ASX: EVN)
According to a note out of Macquarie, its analysts have downgraded this gold miner's shares to an underperform rating and cut the price target on them to $5.30. The broker believes that the US 10-year bond yield has now bottomed and expects the yield curve to continue to lift. In light of this, it has cut its medium term gold price forecasts meaningfully. This has led to earnings downgrades for Evolution and other gold miners. The Evolution share price is trading at $5.71 on Tuesday.
Goodman Group (ASX: GMG)
A note out of Goldman Sachs reveals that its analysts have retained their sell rating and $12.24 price target on this property company's shares. The broker has been looking into the industry and continues to believe its shares are expensive in comparison to peers. It notes that Goodman is targeting earnings per share growth of 9% this year. After which, based on executive remuneration, the company is targeting 6% to 9% per annum growth over the medium term. It doesn't believe this level of growth justifies the premium its shares trade at. The Goodman share price is changing hands for $18.72.
National Australia Bank Ltd (ASX: NAB)
Analysts at Morgan Stanley have downgraded this banking giant's shares to an underweight rating with an improved price target of $20.10. While the broker expects dividends to start their recovery in 2021 and notes that NAB has a strong capital position, it sees downside risks to margins and loan growth forecasts. In light of this and its strong share price recovery, it has downgraded its shares today. The NAB share price is trading at $21.83 this afternoon.
