On Wednesday I looked at three ASX shares brokers have given buy ratings to this week.
Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here's why these brokers are bearish on them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a note out of Credit Suisse, its analysts have retained their underperform rating and cut their price target on this pizza chain operator's shares to $77.73. This follows the release of a trading update which revealed a sudden deterioration in the company's performance in the Japan market. The broker believes this highlights just how difficult it is to forecast post-COVID sales. In addition, Credit Suisse has concerns over the availability of workers and suspects it could impact the company. The Domino's share price is trading at $117.34 this afternoon.
Magellan Financial Group Ltd (ASX: MFG)
A note out of UBS reveals that its analysts have retained their sell rating but lifted their price target on this fund manager's shares slightly to $29.50. This follows the release of Magellan's latest funds under management update. UBS continues to see risks to fund outflows and pressure on its fees. Particularly given the ongoing underperformance of its global fund. The Magellan share price is fetching $35.19 today.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Analysts at Morgans have downgraded this biopharmaceutical company's shares to a reduce rating with a $1.68 price target. The broker made the move largely on valuation grounds following a strong gain after the company was granted approval by the US FDA to undertake a major knee osteoarthritis major trial. In addition, Morgans has concerns that the trial may have been adjusted unfavourably in respect to marketability to gain approval from the regulator. The Paradigm share price is trading at $2.44 on Friday.
