Yesterday we 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 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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Magellan Financial Group Ltd (ASX: MFG)
According to a note out of UBS, its analysts have retained their sell rating and cut their price target on this fund manager's shares to $15.40. This follows the release of another update which revealed a further reduction in its funds under management and news that a ratings agency has downgraded its flagship Global Fund. The Magellan share price is trading at $17.92 this afternoon.
Reece Ltd (ASX: REH)
A note out of Citi reveals that its analysts have retained their sell rating and cut their price target on this plumbing parts company's shares to $16.83. While Reece delivered a solid half year result last month, it isn't enough for a change of rating. It continues to struggle to find a way to justify the multiples (34x FY22e earnings) that the company's shares trade on. The Reece share price is fetching $19.97 on Tuesday.
Zip Co Ltd (ASX: Z1P)
Analysts at Macquarie have retained their underperform rating and cut the price target on this buy now pay later provider's shares by almost 50% to $1.85. This follows news that Zip is acquiring Sezzle Inc (ASX: SZL) and raising $200 million to support the growth of the two businesses. Macquarie isn't sure about the price Zip is paying for Sezzle. It also has concerns over rising bad debts and expenses, which has led to sharp reductions its earnings forecasts. The Zip share price is trading at $2.10 on Tuesday afternoon.
