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:
Image Source: Getty Images
Beach Energy Ltd (ASX: BPT)
According to a note out of Macquarie, its analysts have downgraded this energy producer's shares to an underperform rating with an improved price target of $1.50. This follows the release of a half year result that fell short of the broker's expectations. And while it has upgraded its earnings forecasts and price target to reflect production growth, it believes investors would be better off with other cheaper options in the sector. The Beach share price has fallen heavily today and is now trading at $1.46.
Insurance Australia Group Ltd (ASX: IAG)
A note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this insurance giant's shares to $3.90. While IAG surprised to the upside with its half year results, this isn't enough for a more positive rating. Morgan Stanley believes there are risks that are not being accurately priced in by the market. This is particularly the case with claims inflation. The IAG share price is fetching $4.74 today.
Magellan Financial Group Ltd (ASX: MFG)
Analysts at UBS have retained their sell rating and $7.00 price target on this fund manager's shares. The broker continues to believe that the risks are to the downside for Magellan. This is due to fund outflows, staff retention concerns, and its belief that Magellan may need to cut its fees to reduce retail fund outflows. This could put pressure on the company's margins. The Magellan share price is trading at $18.12 currently.
