On Tuesday I looked at three ASX shares that have been given buy ratings by leading brokers this week.
Unfortunately, not all shares are in favour with brokers right now. The three shares listed below have all just been given sell ratings. Here's why they are bearish on them:
Australia and New Zealand Banking Group (ASX: ANZ)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and $27.80 price target on this banking giant's shares. The note reveals that the broker was a touch surprised with the level of ANZ's customer remediation. This is because it was under the impression these activities had progressed further. In addition to this, its analysts continue to believe there will be pressure on its margins and earnings in the near term. However, it is worth noting that the ANZ share price has now dropped below this price target. This afternoon it is down over 1% to $27.07.
Fortescue Metals Group Limited (ASX: FMG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $7.85 price target on this iron ore producer's shares. According to the note, it continues to be bearish on Fortescue's shares despite news that it is bidding for blocks at the Simandou iron ore deposit in Guinea. Whilst this has the potential to be a positive over the long term, it doesn't change the fact that its shares are trading notably higher than its price target today. The broker has also previously suggested that iron ore prices could weaken in 2020 as supply grows. The Fortescue share price is down 2% to $8.57 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating but lifted the price target on this fund manager's shares to $46.60. According to the note, the broker has lifted its earnings estimates for Magellan following its strong first quarter update. However, it continues to believe its valuation is stretched. For this reason, it has retained its sell rating. The Magellan share price is down almost 2% to $48.38 on Wednesday.
